B P Collins Solicitors: talk to the experts
Gerrards Cross: +44(0) 1753 889995
Beaconsfield: +44(0) 1494 675363
Related stories
SAYE rates changed
Brits call on employers to take responsibility for health
'Uncertainty' over employment directive
NHS accused of employment discrimination
Consultation shows firms oppose compulsory payrolling
31 July 2008
A consultation on taxing employee benefits in kind through payrolls has shown most firms are against making the proposed idea compulsory.
HM Revenue and Customs (HMRC) received 67 written responses, held eight meetings and employed two research companies to look into the potential impacts of the plans.
The research was finished in March and has now been revealed to the public for the first time.
HMRC said: "The majority of respondents were against the payrolling proposals. However, a large number of respondents could see the benefits of employer choice in this area while compulsory payrolling for all employers was generally opposed."
The organisation said the objectives of the plans were to reduce administrative burdens, provide improved clarity over the tax treatment of their benefits in kind and expense payments, and to increase processing efficiency.
Accounting Web reports the idea of compulsory payrolling was unpopular "because it passes on considerable burdens to employers" despite the idea being a success in countries such as Ireland.
Other options put forward and not yet consulted on include a statutory basis for employers that choose to payroll benefits and expenses and a law basis and phase in payrolling for all employers.
