On 13 September 2017, HMRC published their booklet 480 for the 2017-18 tax year. The booklet is HMRC’s interpretation of the tax legislation as it relates to expenses and benefits and is, essentially, a payroll professional’s ‘Bible’ of expenses and benefits processing. It includes the long-awaited guidance on how to deal with provision under OpRA (Optional Remuneration Arrangements).
Normally, employers would head to the Employer Bulletin for the latest news on topics and issues that affect them in their day-to-day professional lives. This is still a worthwhile read. However, employers should also look out for the Agent Update.
Matthew Taylor, chief executive of the Royal Society of Arts was asked in October 2016 to conduct an independent review into UK working practices. This was in recognition of the fact that the modern ways of business working and existing employment law did not complement each other. On 11 July 2017, Mr Taylor published his 116-page report entitled ‘Good Work’.
HMRC’s Employer Bulletin is marketed as “your route to the latest in payroll news”. Unfortunately, it often comes out just before an important event, meaning it is only the latest news for a very short period of time.
At Spring Budget 2017 (point 3.7), the government said that it recognised employers chose to remunerate their employees in a number of different ways. However, the tax system in regards to these different types of remuneration was inconsistent and needed to be made “fairer and more coherent”. This included looking at the taxation of benefits in kind and employee expenses.
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