ONLINE LEARNING
POLICY HUB
This course gives a high- level overview of the day to day obligations of the payroll function, including the fundamentals of payroll, statutory and voluntary payments, and deductions. The CIPP’s Recognition of Prior Learning (RPL) online assessment uses evaluation of existing skills and knowledge to help you move straight onto year two of the Foundation Degrees. Book your place for £595+VAT at cipp.org.uk/study Payroll for non-payroll professionals Fast track your learning Are you looking to progress faster through our Foundation Degrees in either payroll or pensions? Do you have at least two years’ experience as a payroll or pensions professional? Duration Two consecutive half days
l an employee applies to remain in the UK and the organisations pays for this, would that attract tax? A: HMRC guidance states that an employee who comes to the UK from abroad may be entitled to tax relief, providing they satisfy the conditions stipulated below. If an employee is entitled to tax relief under these rules for the full cost of a journey, the cost of any visas needed for that journey are also eligible for tax relief. Taken from http://ow.ly/bsaC50LCmMz: “People from abroad coming to work in the UK 7.8 An employee is entitled to tax relief under these special rules only if they meet certain conditions. To decide whether an employee is entitled to tax relief under the special rules it’s necessary to find out on what date they came to the UK to work, work out which tax year that date falls into, and ask was the employee: l resident in the UK in either of the 2 tax years which ended before the tax year in which that date falls? l in the UK, for any reason, at any time in the 2 years ending on the day immediately before that date? If the answer to either of these questions is ‘no’, then the employee is entitled to tax relief under the special rules. If the answer to both of these questions is ‘yes’, then the employee is not entitled to tax relief under the special rules. Extra costs of foreign travel 7.10 Where an employee is entitled to tax relief under the special rules on foreign travel for the full cost of a journey, they’re also entitled to tax relief for the cost of any: l inoculations needed for that journey l visas needed for that journey.” n
The exemption in Section 250 of ITEPA 2003 removes any tax charge where an employer, or a third party, incurs expenditure on work-related training for employees. It doesn’t matter whether the employer directly incurs the expenditure or reimburses the employee’s expenditure. The exemption covers amounts that would otherwise be taxable as earnings, as benefits or under the vouchers rules. Please see http://ow.ly/3pJo50LCiuw and http://ow.ly/nc2U50LCiGz for reference. Benefits in kind (BIKs) for employees on maternity leave or sabbatical Q: Do you have any information regarding entitlement to BIKs for employees on maternity leave or sabbatical? A: Employees on maternity leave have protected rights and are entitled to the same terms and conditions as when they were at work. This would mean that entitlement to any BIKs would continue. For employees on sabbatical, this would depend on whether their employment was treated as continuous employment when on sabbatical leave or not. This would be agreed between employer and employee prior to the period of the sabbatical leave. The contractual agreement would need to be reviewed to assess whether the employee would still be entitled to the BIKS they enjoyed prior to their sabbatical leave while they’re away. Tax and NI treatment of visas Q: If we have new starters coming to the UK, who need a visa, which the organisation will pay for, is this subject to tax deductions? Is this different if: l we renew an employee’s visa three or four years down the line? If the organisation pays for that, and the employee is living in the UK, would that attract tax as normal earnings?
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What are the tax implications for employers who pay for employee visas?
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| Professional in Payroll, Pensions and Reward |
Issue 86 | December 2022 – January 2023
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