To wrap up 2015, two sets of new Regulations were laid. These are:
The Income Tax (Approved Expenses) Regulation 2015 and The Income Tax (Pay As You Earn) (Amendment No.4) Regulations 2015.
The Income Tax (Approved Expenses) Regulation 2015
This first set of Regulations came into force on 21 December 2015 and define the approved way of calculating and paying or reimbursing standard meal allowances for the purposes of the new expenses exemption introduced by section 11 of the Finance Act 2015.
The Income Tax (Pay As You Earn) (Amendment No.4) Regulations 2015
This second set of Regulations came into force on 14 December 2015 and from 6 April 2016 and
Remove the requirement for certain expenses payments made to employees to be reported on form P11D, and Allow employers to opt to collect income tax on certain benefits through the Pay As You Earn (“PAYE”) system and not report those benefits to HMRC on form P11D;As such, these Regulations will enable simplification measures to be enacted from 6 April 2016 enabling
Employers to voluntarily payroll employee benefits and expenses, The removal of the £8,500 threshold (Form P9D and The introduction a general exemption for qualifying expenses.Comment
We are moving ever closer to the point from which the processing of expenses and benefits starts to change very radically. We only hope that this is just the start of the process and that we will move ever further forward in the simplification process!
