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Q: We are a company that offers our employees personal loans, which are repaid through the payroll each month. Should they be reported as P11D items? A: Whether you have to report this depends on the value of the loan. The threshold for small beneficial loans is now £10,000; so, if the loan is no higher there is nothing to report. Bear in mind that if an employee has more than one loan they would need to be aggregated to determine whether the total exceeds the £10,000 limit. If they do exceed £10,000 then there will be a reporting requirement in the P11D return. These links are to the relevant guidance HMRC provides, with the third link showing how the calculation is performed: https://goo.gl/ePvFh9, https:// goo.gl/8muFL2, https://goo.gl/OajRIR. Q: We currently offer salary sacrifice for cycle to work. If we were to provide a trailer to put a child into (a toddler aged two) would this count as safety equipment under the rules of the cycle to work scheme? A: The guidance relating to cycle to work and safety equipment would not include trailers; therefore, they are not considered to be safety equipment and would not qualify as an allowable accessory. The guidance states that the following are considered to be accessories: ● cycle helmets ● bells ● lights, including dynamo packs ● mirrors and mudguards ● cycle clips and dress guards ● panniers, luggage carriers and straps to allow luggage to be safely carried ● child safety seats ● locks and chains to ensure cycle can be safely secured ● pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs ● reflective clothing along with white front reflectors and spoke reflectors. n
recalculate the salary correctly now for July and how should this be adjusted in the payroll? A: This is a common situation when an employee passes away. The best procedure to adopt is to ensure the returned payment is paid back to the correct bank account within the company. Yes, you would recalculate the amended pay and correct the tax, NICs and pension deductions on the payroll to arrive at the new amended net pay figure. Decide the method of payment. If it is in the form of a cheque then it should usually be made out to the ‘Executors of Mrs/Mr xxxxx’, unless the employer has proof of who the executors are. HMRC provides guidance for employers on the GOV.UK website on how an employer should treat this situation: https://goo.gl/1MxGJd. Q: We currently claim the £3,000 employment allowance every April for each pay as you earn (PAYE) scheme. Please confirm that we should only claim one £3,000 employment allowance for multiple PAYE scheme where they are connected companies? A: We confirm that the guidance issued by HMRC states that if an employer has multiple PAYE references (which are connected) the employer can only claim the allowance of £3,000 against one of their multiple PAYE references. To help with your understanding I have supplied the links to the GOV.UK website where the detailed guidance can be found: https:// goo.gl/yktEQq and https://goo.gl/CshM9w. Q: We have started to prepare and complete our P11D returns. If an employee earns less than £8,500 per annum and they have reportable benefits in kind is the employer exempt from paying Class 1A NICs on these benefits? A: The £8,500 threshold for P9D returns was removed from April 2016, so this threshold no longer applies (except for ministers of religion). The result is that all employees provided with any benefits in kind that are not payrolled, will have to have these benefits reported in a P11D return. Where the benefits in kind are payrolled, there will be no requirement for them to be reported via P11D, but if Class 1A NICs are due these payrolled benefits in kind are to be reported in the P11D(b).
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Covering a comprehensive range of topics, the Foundation Degree in Payroll Management offers students a work-based learning experience to gain knowledge, understanding and confidence in their role, and provide a fundamental grounding in payroll administration.
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Issue 33 | September 2017
| Professional in Payroll, Pensions and Reward |
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