Clause added to bring about change to OPRA rules for cars and vans 9 July 2018
New measures have been introduced that adds to ITEPA as it relates to Optional Remuneration Arrangements (OpRA) rules.
The clause that has been introduced, with effect from the 2019-20 tax year, will bring about amendments to the optional remuneration arrangements (OpRA) legislation introduced in section 7 and Schedule 2 to the Finance Act 2017. The changes aim to ensure that when a taxable car or van is provided through OpRA, the amount foregone includes costs connected with the car or van which are regarded as part of the benefit in kind under normal rules. In addition, the changes adjust the value of any capital contribution towards a taxable car when the car is made available for only part of the year.
Full details of the clause together with the policy intent and background to this amendment can be found at GOV.UK.
Comments or concerns relating to this amendment can be made by email to employmentincome.policy@hmrc.gsi.gov.uk.
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Tax relief guidance of flat rate expenses updated 5 July 2018
Familiarise yourselves with updated guidance relating to flat rate expenses.
Tax relief may be available for where a worker incurred expenses for certain expenses relating to their job. Amounts can be claimed as a standard flat rate or the actual cost. Receipts to confirm actual amounts expended must be retained where a claim is made based on actual cost.
A claim for tax relief may be made for expenses relating to:
• small tools • protective clothing needed for your work • uniforms
Tax relief is not available for everyday clothing and where any part of the expense is paid by the employer, this should be deducted from the amount to be claimed.
Gov.uk has recently updated its guidance as it relates to the flat rate amounts that are available for a large number of different industries and sectors. The update on this occasion relates to amounts that can be claimed by the Police Force.
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UK workers could save millions a year if payroll loans replaced high cost credit 12 July 2018
If companies introduced a payroll loan scheme like the Co-op, it would provide workers with a vehicle to repay loans direct from their salaries, a practical alternative to high cost forms of borrowing.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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