Having read through the HMRC penalty regimes – I sit and wonder whether they have thought this one through. I appreciate their need to reduce the amount of penalties they currently have (approximately 350) to make it a simpler and more efficient process – something I could have told them a long time ago, but what I don’t understand is the reasoning behind their new penalties they are thinking of introducing. am I alone in thinking this??
The one that stood out to me were:
“Exemption tax of corporate taxis” where if employees are working unusually late and the company pays for your taxi home, there are no tax complications. But under the new proposal the employee would have to pay tax on the fare (or your company could pay it for you) and they will also have to pay NIC, on top of this your company will have to administer the taxation!
Forgive me if I am mistaken but the HMRC are now penalising employees for working longer and harder? Although we are only discussing consultations of proposals and not “done deals” – the thought of introducing the penalty I have stated above is somewhat absurd.