13 December 2017 
Michael Edwards,
Members may recall that HM Treasury (“HMT”) launched a Call for Evidence regarding the taxation of employee expenses earlier in the year. BUFDG submitted a response based on a survey of members. HMT have now released a report on the basis of the contributions made by stakeholders that can be accessed via this link together with proposals for action announced with the Budget a couple of weeks ago. The main message that HMT have taken from the exercise is that the rules are still fit for purpose and continue to reflect the expenses employees incur so that a fundamental reform to the tax relief for employee expenses is not warranted or necessary at this time. Therefore, the government has no plans to do so.
However, as announced at the Budget, the government has decided to introduce changes in certain areas where respondents raised specific concerns:
Guidance and claims process for employee expenses – HMRC say they will work with external stakeholders to improve the guidance on employee expenses, particularly on travel and subsistence and the process for claiming tax relief on non-reimbursed employment expenses. Although I will be joining in as a BUFDG representative, there is an opportunity to get involved in this work should individual members wish to do so; expressions of interest may be made to: employmentincome.policy@hmrc.gsi.gov.uk
