From 6 April 2016, HMRC will introduce an exemption from paying tax and national insurance contributions (NICs) on qualifying paid or reimbursed expense payments, following legislative changes in Finance Act 2015.

The draft regulations are currently out for technical consultation with a number of changes, including the abolition of the £8,500 earnings threshold for benefits in kind and expenses, the collection of tax in real time on benefits in kind and the introduction of an exemption for paid or reimbursed expenses to replace the current dispensation system.

The regulations that set out the statutory framework for payrolling benefits in kind have been extended to include all benefits in kind other than accommodation, beneficial loans and credit tokens and vouchers.