The Office of Tax Simplification issued its final report on 10 December which considered the challenges and complexities that have arisen for employers and employees following the changes in working practices in the wake of the pandemic.

The report, which was an ‘own initiative’ report, was based on the evidential findings from a survey and meetings with  over 450 contributors. 

The main findings were:

•          Businesses saw hybrid working as here to stay and are planning accordingly. 
•          Employers want a review of the expense and benefits systems, where many concepts are tied to more traditional ways of working. 
•     With the changes in working habits, HMRC needs to improve its limited guidance on hybrid working to help both employers and employees.
•     On distance working, businesses noted cross-border payroll and social security implications were already complex and wanted to see improved HMRC processes, turnaround times, more PAYE relaxations and better guidance.

 

This article reflects the position at the date of publication (23 January 2023). If you are reading this at a later date you are advised to check that that position has not changed in the time since.