Benefits-in-kind regime 'not fit for purpose', says ICAEW

01 Oct 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) has suggested that the current benefits-in-kind (BiK) system is 'not fit for purpose' for a post-coronavirus (COVID-19) world.

Taking into account the 'new normal', the ICAEW said that the BiK tax legislation is no longer fit for purpose 'in light of the likely increase in employees working from home'.

It stated that responsible employers are likely to permit their employees to choose whether they work from home or in the office, and recommended that employee choice should not be detrimental to the deductibility of expenses incurred by homeworkers.

The ICAEW's Tax Faculty has submitted a series of recommendations to HMRC, outlining improvements to the employee BiK and expenses regime in light of the COVID-19 pandemic.

The Institute stated that the BiK regime needs to 'adapt to accommodate changes in working practices arising from the COVID-19 lockdown', including the introduction of social distancing measures.

Further information can be found here.

Try a site search Tax return, dividends, pension, autumn statement...

SagexeroSage
Company details

01243 776938

James Todd & Co, 1&2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester, West Sussex PO19 1BJ
Copyright

© 2020 James Todd & Co. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.