The government has unveiled a raft of proposals aimed at simplifying the taxation of benefits in kind and expenses. Four consultation documents are open for comment, in response to recommendations by the Office of Tax Simplification.

£8,500 threshold

The government intends to abolish the £8,500 threshold, meaning all employees will be subject to tax on benefits, while employers will become liable to class 1A National Insurance (NI) on most benefits but will need complete only one return (P11D).

The consultation wishes to …