On 1 January 2011, the Working Costs Regulation (WKR) was introduced in the context of tax-free allowances and benefits in kind to employees. There was a 3-year transitional period to allow all employers to get used to the WKR. Towards the end of that transitional period, the functioning of the scheme was evaluated, the transitional period was extended by one year and, after the bottlenecks identified were resolved in the 2015 Tax Plan, the scheme (modified here and there) was permanently introduced on 1 January 2015.
The intention of the WKR was, or we misunderstood, to introduce simpler enforceable rules. The recently published on the Inland Revenue's website frequently asked questions (obviously mainly the answers to those questions) nevertheless seem to indicate that there is no real simplification of the rules. Indeed, a set of rules seems to have emerged that is as detailed as the rules that applied before the WKR.
Employers who assessed in the second half of 2014 what impact the (final) introduction of the WKR would have on their (staff) costs would be wise to consider whether the nuances evidenced by the answers to the frequently asked questions could further reduce the tax part of those costs. This sometimes requires some adjustments to the way a reimbursement or provision is made. Naturally, VWGNijhof will be happy to assist you with this (re)assessment.