As promised in the 2007 Pre-Budget Report, on 13 December 2007, HM Revenue & Customs (HMRC) published a

seeking views on its proposal to include all benefits and expense payments in the payroll. The consultation document also contains a proposal to remove the £8,500 a year earnings threshold, below which employees are not taxed on certain benefits.

While the proposals would provide greater certainty and consistency of treatment, it is far from clear that they would achieve the significant reduction in administrative burdens and compliance costs for employers, that HMRC anticipates. What is clear, however, is that implementing the proposals will bring forward the due date for payment of tax and could have a significant impact on an employee's net pay in a tax month.

HMRC requests comments on the proposals before 14 March 2008.