HM Revenue and Customs (HMRC) should undertake a full review of the
tax regime relating to benefits and expenses, according to a professional body.
The Institute of Chartered Accountants of Scotland (ICAS) made the suggestion in response to an HMRC discussion paper which recommended that benefits in kind and expenses should in future be delivered through the payroll.
Derek Allen, director of taxation for ICAS, claimed the proposal in its current form is not practical.
"It is difficult to imagine how a move towards including benefits and expenses in payroll would reduce the administrative burden on employers," Mr Allen said.
He added that asking employers to identify, quantify and allocate benefits earlier than they are now required to would "impose extra difficulties" unless the system is simplified.
Mr Allen recently criticised the government's decision to press ahead with reforms to the capital gains tax regime, claiming that it could have a negative impact on the economy.
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