OTS publishes its final report on employee benefits and expenses

The Office of Tax Simplification has published its final report on employee benefits and expenses concerns itself mainly with accommodation benefit and termination payments.

Recommendations for updating accommodation benefit include:

• taking the most basic accommodation out of charge entirely;
• dropping the 'customary' rule; and
• taxing all accommodation on the basis of open market rental value.

On termination payments, the OTS recommends limiting relief to circumstances where the employee qualifies for a statutory redundancy payment.

The report also contains an update from HMRC on the 'quick wins' identified in the August 2013 interim report.