By Graham Whitehouse | 21 November 08 | In: Payrolling Benefits
The issue of payrolling benefits has been on the table for nearly a year now. HMRC issued a consultation document on this subject last December. Responses to the consultation document were mainly negative with representatives for smaller employers being against these proposals. However large employer bodies (e.g. IPP) were firmly in favour of payrolling benefits.
Subsequently over the summer, HMRC met with representative stakeholders to find out how to make any new system for taxing benefits more palatable.
In next Monday’s Pre-Budget Report, the Chancellor of the Exchequer will be providing an update on the government’s latest position. It is expected that the Chancellor will state that this review will be continuing for the time being.
As a member of the stakeholder panel, PAS Ltd have been feeding in our views on how the proposed new legislation can be made to work in practice. We have practical experience of writing payrolling of benefits software for clients in the Republic of Ireland where similar legislation has been in force for nearly 5 years.
What has been made clear in these discussions with HMRC, is that it is highly unlikely that this issue will be shelved. It is very probable that payrolling of benefits legislation will be phased in over a period of time.
Whatever the outcome you can rest assured that PAS Ltd already has software for payrolling benefits , so you will be able to cope with any eventuality.
As the annual task of collating benefits information will eventually become a monthly one, it may be prudent to review your benefits information gathering processes. This will put you in a better position when new benefits legislation is eventually announced. With many years of experience of dealing with blue-chip clients, PAS Ltd has built up an in-depth knowledge of best practices in benefits information workflow. Please contact us if you require our assistance to advise you on ways to streamline your operations.
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