General Expenses, Benefits & Reward News
The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2 January 2018
Regulations were laid before Parliament in December that will come in to force from 6 April 2018.
The regulations make provisions for the calculation and reporting of a Benefit in Kind (BiKs) where the benefit is chosen instead of a cash payment under an Optional Remuneration Arrangement (OpRA) which might include a salary sacrifice or some other form of cash exchanged in return for a BiK. The amendments to the PAYE Regulations seek to clarify the taxable amounts that need to be reported either via Real Time Information (RTI), where employers are payrolling BiKs, or at the end of the year for non-payrolling employers. The summary of impact on employers as identified in the Tax Information and Impact Note (TIIN) suggests that employer one-off costs and ongoing costs ‘ are expected to be negligible .’ HMRC will keep under review this measure through communication with affected taxpayer groups. The amendments which will have effect from 6 April 2018 also include provisions that introduce a requirement for employers to report car and car fuel data where they provide car Benefits in Kind to their employees. The changes state what information employers are required to report and how they will submit it to HMRC via RTI processes The summary of impacts as identified in the TIIN estimates that employer one-off burdens will arise from familiarisation with the change in rules and are expected to be negligible. Anticipated ongoing burdens arise from affected employers being required to report details of company cars on the first payment submission in the tax year and in subsequent payment submissions where there is a change to the company car benefit provided (for example it ceases, or a new car is provided). HMRC anticipates ongoing costs to employers will amount to £1.3 million per annum.
Geographical extent: UK wide
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Draft guidance on reform to workplace vehicle charging tax exemptions 16 April 2018
HMRC has published a technical consultation which seeks comments on the draft guidance for workplace charging tax exemptions for electric and plug-in hybrid vehicles.
From 6 April 2018, where an individual is provided with workplace charging facilities for their own car or van, no taxable benefit arises in respect of costs relating to the provision of electricity at those facilities if the qualifying conditions are met.
The exemption applies to charging facilities for all-electric and plug-in hybrid cars and vans and covers:
• the cost of electricity • the cost to the employer of providing the charging facilities • any connected services.
The consultation details draft updates to the Employment Income Manual for the expected changes to the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 from Finance Bill 2018-19, which have retrospective effect from 6 April 2017.
The guidance will be finalised and published in the Employment Income Manual following Royal Assent of Finance Bill 2018-19.
This consultation closes at 11:45pm on 5 July 2018.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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