Following Spring Budget 2017, HM Revenue & Customs (HMRC) has launched a new consultation into the taxation of employee expenses.<\/p>\n
The consultation is the latest stage of a four-year Government review programme, carried out in collaboration with the Office of Tax Simplification and geared at bringing benefits and expenses taxation into line with modern working practices.<\/p>\n
Laid out as a \u2018call for evidence\u2019, its primary purpose is to seek views on whether flat rate expenses such as Approved Mileage Allowance Payments (AMAPs) are still appropriate in today\u2019s working world.<\/p>\n
HMRC is seeking evidence in the following areas:<\/p>\n
Travel data analysts and fleet industry bodies are calling upon small and medium-sized enterprises (SMEs) and fleet operators to respond to the call for evidence, which comes shortly after flat rate travel and subsistence payments were abolished last year.<\/p>\n
Reports suggest that HMRC has no explicit plans to abolish AMAPs or the current advisory fuel rates (AFRs). However, the Revenue\u2019s review does bring into question whether such rules are \u2018fit for purpose\u2019 in the modern economy.<\/p>\n