Guy Westhead (GW) HMRC Team leader, Benefits and Expenses team
Su McLean-Tooke (SMcL T) HMRC Policy, Benefits and Expenses team
Julie Philpotts (JP) (PAYE, SA, NIC Process)
Simon Parsons (SP) (CERIDIAN)
Jas Jhooty (JJ) (PAS LTD)
Shawn Healy (SH) (BDO)
Mark Groom (MG)
Peter Bickley (PB) (ICAEW)
Trevor Blackmur (TB) (AAT)
Steve Clark (SC) (HSBC)
Ann Gardner (AG) (HMRC) Minute taker
Everyone round the table introduced themselves and Guy Westhead (GW) welcomed Simon Parsons (SP) to the meeting as this was his first one.
The minutes of the last meeting were agreed.
GW updated the meeting on current thinking in HMRC on salary sacrifice. HMRC were continuing to monitor the issue. Escalating cost to the public purse was one issue but by no means the only one – level playing fields was another concern. Sean Healy (SH) asked about the cycle to work scheme and the implication for those earning at NMW and under-18s. GW said there was no change to previous advice though this would be considered as part of the overall consideration to salary sacrifice. HMRC took an action point to provide clarity on where the Clearance Centres are and what their role is. There was some discussion around Bus Travel but contact was ongoing about that with technical advisors.
An internal document was circulated which provided a timetable for payrolling benefits-in-kind work over the next 12-18 months. This was discussed. The Employer Bulletin containing the questionnaire had been produced and it was agreed that a link would be sent round the group.
TB mentioned that he had written with some comments and concerns on payrolling and GW had promised a reply. He had also suggested that the very final stage of the whole process should be to go live with only a sample of employers (large and small) for an entire tax year before rolling out nationally.
Action Point: HMRC to send the Employer Bulletin link. (This has been discharged since the meeting).
There was some discussion of this. Many employers wanted to continue to have the option to submit P46 CAR charges, and not to rely on the P11D.
Action Point: It was agreed a meeting would be held with Rosa Tormo of the CBI (who had made the original request) and all members of the Benefits and Expenses Group would be invited to attend if they wished. (This has subsequently been arranged for 20 July).
SC had requested more flexibility on multiple tax-exempt long service awards. HMRC said that whether or not this was desirable (and arguably not) they were not able to add to concessionary practices now without legislation.
Action Point: HMRC asked for proposals that would not require legislation if progress was to be made on the proposal.
SMcL-T summarised recent changes made in the Budget. JP covered some of the processing issues arising as a result.
PB had written to the Director of PSN Sarah Walker, expressing concern about the late issue of paper forms P11D(B) this year. GW summarised Sarah’s intended reply which could be discussed further at the ETNCC meeting the following week. HMRC regretted the late issue of the forms but there were a number of alternative courses of action that businesses and individuals could pursue to get their data to HMRC without waiting for the paper returns if they preferred.
JJ had a question about impact on the whole year 'Official Rate' when changes occurred part way through the year as this time. It was agreed he would write in.
Guidance not clear on Summer Balls/Christmas Parties – HMRC would
consider in the run up to the 2009 festive season.
In response to an action point from the last meeting, SMcL-T confirmed the
treatment of childcare vouchers for employees being made redundant.
AP – Put on agenda for next meeting
The meeting finished at 12.45.
Date of next meeting – Thursday 10 September 2009 10.00-12.00 – Room GE/01 100 Parliament Street.
