16
Dec
2015
0

Hurrah: the government is proposing tax on benefits-in-kind to be simplified from 6 April 2016

The government has announced that benefits worth £50 or less, paid for by the employer, will no longer trigger tax and national insurance for employees.

Up until now HMRC has used its discretion to determine what sort of benefits-in-kind are trivial and should be exempt. The problem is that there has been no clear rule.

It has often been difficult to determine whether a benefit is trivial. Leavings dos, taxi rides and stationary have all caused confusion – although there is a general exemption for Christmas parties.

The changes should meant less headaches for employers and employees alike.

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