The amount of P11D forms submitted to HMRC should be reduced “substantially”, advises the Office of Tax Simplification (OTS) in its latest briefing to the government.

Review of Employee Benefits and Expenses: Second Report recommends applying class 1 National Insurance (NI) to all worker remuneration, whether cash or benefits in kind, with the cost to employees offset by a reduction in NI rates.

The document also moots a legislative framework to permit employers to have some or all benefits and expenses taxed through payroll on a voluntary basis.

Firms would be able to continue to pay class 1A NI contributions in respect of ‘payrolled’ benefits after the end of the tax year, but rules could be introduced to allow bosses to pay the NI on a …