Reforms to the tax treatment of EOTs and EBTs proposed in the paper are intended to focus the rules more effectively on the policy objectives of rewarding employees and encouraging more employee engagement. Another objective is to prevent tax advantages being obtained through the use of these trusts outside their intended purposes.

While a lot of the material published on 18 July was expected, there were some surprise announcements including planned administrative changes to the high income child benefit charge.

Highlights from the broader tax news for the week ending 12 April 2023, including: pension lump sums; HMRC’s Digital Disclosure Service; digital services tax; partnerships holding UK residential property; till system disclosures; and disguised remuneration instalment arrangements.

Employers (except for the digitally excluded) will be required to submit and amend forms P11D and P11D(b) online only. Paper original and amendment forms P11D and P11D(b) will be rejected.

ICAEW’s Tax Faculty has called on HMRC to improve form P11D, used to report benefits in kind, to simplify administration for HMRC, employers and employees.

ICAEW recommends that taxpayers seek independent advice if they receive an assessment as part of this HMRC campaign.

A representation dated 27 September 2023 to a consultation published by HMRC on 18 July 2023.

A representation dated 22 August 2023 to a consultation published by HM Treasury on 5 May 2023.

Text of letter sent on 19 December 2022 to HMRC about form P11D employer annual return of employee expenses and benefits.

A response dated 28 October 2022 to a review published by the Office of Tax Simplification on 31 August 2022.

Government guidance on individual expenses and employee benefits presented in an A-Z list

Guidance on the treatment of company expenses for self-employed taxation explaining different categories of allowable business expenses.

Information aimed at employees about tax on taxable benefits such as company cars, accommodation and loans provided by employers.

Guidance on how to report expenses and benefits provided to employees or directors, explaining which benefits can be payrolled, how to work out the cash equivalent, salary sacrifice, pay periods, situations where the employee pays towards the cost of the benefit, and where an employee’s tax is more than 50% of their pay.

Guidance on the tax, National Insurance and reporting obligations for employers providing expenses and taxable benefits to employees on a wide range of topics.

Overview providing guidance on tax and National Insurance on expenses and employee benefits, covering the procedure for submitting a P11D form, deadlines, record keeping, and exemptions and dispensations.

A list of software suppliers offering simple record keeping applications for cash basis and simplified expenses.

Policy paper describing further measures to be implemented in Finance Bill 2017-18 to prevent the future use of disguised remuneration schemes and introduce new charges on disguised remuneration loans regarding self-employment taxation.