HM Treasury has published a summary of the responses received during its call for evidence on potential areas for reform in the taxation of employee expenses.

The message from respondents by and large was that the current rules on the taxation of employee expenses are well established and often central to the design of employers’ expense policies. Respondents gave no suggestion of major problems in the system that warranted fundamental reform. The Government’s response therefore does not suggest that it will make any significant changes to the system as it stands.

However, the Government has committed to the following proposals:

• publishing a consultation in 2018 on extending the scope of tax relief currently available to employees (and the self-employed) for work-related training costs
• removing the requirement for employers to check receipts when making payments to employees for subsistence using benchmark scale rates from April 2019
• placing the existing concessionary accommodation and subsistence overseas scale rates on a statutory basis from April 2019
• working with external stakeholders to explore possible improvements to the guidance on employee expenses, particularly on travel and subsistence, and the process for claiming tax relief on non-reimbursed expenses

The Government’s response also highlighted certain specific areas on which had no plans to make any changes (including home working, relocation and NICs treatment).

For more information on employment taxes, click here.