A list of ‘quick wins’ has been produced by the OTS (Office of Tax Simplification) to help to improve the situation concerning benefits and expenses for the employee.
A number of moves have already been taken up; for example, the P11D and P11D(b) forms can now be submitted online. It is hoped that a number of other measures can be taken up in the short term to help to simplify the system. The OTS wants HMRC to create a list of benefits that fall into the ‘trivial’ category and believes that it is also important for HMRC to make people aware of other guidance that is available.
It has also been noted that there may be some changes internally for HMRC. There is currently a need for officials, staff and employers to communicate much more effectively. Giving employers the ability to resolve tax issues for their staff directly with the government department will help to keep communication streamlined without the involvement of multiple parties.
For the long term, the OTS is making recommendations to look at larger issues such as how car fuel benefits are calculated. Simplifying the system will help those in the contracting community, such as Umbrella Company Employees, to calculate their expenses and benefits much more easily.