The OTS undertook a review of BIK for employees and following the results are to look at four factors in-depth via consultations.
The consultations are to propose updates to the administration of employee BIKs in order to simplify how they are dealt with.
The four consultations include:
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Removing the £8,500 threshold for BIKs (Benefit In Kind)
Employees earning less than the threshold are not taxed on BIKs. The proposal consists of removing this threshold so all employees are treated to the same calculation regardless of how much they earn.
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Introduce exemptions for more 'trivial' BIK categories
The treasury seeks to define what should be classed as 'trivial' and how exemptions should be structured.
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Voluntarily collecting BIK tax through the regular payroll
Consulting on applying real time collection of tax to BIK and expenses.
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Replacing special dispensations with exemptions for classes of expenses
The treasury seeks to gain insight into exemption categories, the record keeping requirements, rates, timescales, rules, guidance and protection from abuse.
Consultations will continue until September with the results published and interpreted via the 2014 Autumn Statement.