NATIONAL FORUMS Exclusive to CIPPmembers *
Policy hub
Q: We offer loans to employees that are within the £10,000 limit, which are for various things. If the loan is taken from their net pay will this affect the minimum wage? A: No, these deductions will not affect the national minimum/living wage. Guidance about what deductions can be made from a worker that do not reduce minimum wage pay is given below and can be found here: http://bit.ly/34xzzqB. “Deductions from pay and payments by workers that do not reduce minimum wage pay – The following deductions by you or payments by a worker will not reduce a worker’s pay for minimum wage purposes: ● deductions for income tax and [NICs] ● deductions from pay allowed under the worker’s contract which relate to specific misconduct or payment by the worker of a specific penalty ● deductions from pay or payment by the worker because of an advance of wages or on account of an advance under an agreement for a loan ● deductions from pay or payment by the worker for the purchase of shares, other securities or share option, or any share in a partnership ● deduction from pay or payment by the worker to recover an accidental overpay- ment of wages ● deductions from pay that are not for expenditure connected to the worker’s em-ployment or for your own use or benefit ● voluntary payments by the worker for the purchase of goods and services from you – for example payments for meals the worker has freely chosen to buy in the staff canteen (however, if you deduct money from the worker’s pay in these circumstances this will reduce minimum wage pay) accommodation if the charge for the accommodation is at or below a certain level.” Q: My previous employer paid my CIPP membership fee directly to the Institute which had no tax implications for me. If I were now to pay the fee myself and claim the amount back from my new employer, could the amount be reimbursed as a non-taxable and non- NICable expense? ● certain deductions from pay and payments by the worker for
A: You do not have to report anything to HMRC or pay tax and NICs where the member pays the CIPP directly and their employer either reimburses them or pays the CIPP directly. The criterion for the CIPP and other professional bodies is that the organisation has to be on HMRC’s list of approved professional bodies (‘List 3’). Q: When I am processing the deemed payment that falls under ‘off payroll working’ and collect and pay over the tax and NICs, should the deemed payment also be included for our apprenticeship levy? A: Yes, these deemed payments will affect the apprenticeship levy payments as specified in guidance below which can be found here: http://bit.ly/2m90A3a. “Your responsibilities as the fee-payer – When you receive the worker’s employ- ment status determination and the off- payroll working rules apply, you must: ● calculate the deemed direct payment to account for employment taxes and [NICs] associated with the contract ● deduct those taxes and employee [NICs] from the payment to a worker’s intermediary ● pay employer [NICs] ● report to HMRC through real time information the taxes and [NICs] deducted ● apply the apprenticeship levy and make any payments necessary. Employment allowance cannot be used against payments to deemed employees.” Q: We are moving offices and I have been asked what happens if we offer car parking spaces off-site to those employees permanently moved. The suggestion has been made that we have a pool of parking lots which we would use when the on-site car parking is full. Is this a taxable benefit in kind? Also, what if we ask them to salary sacrifice for the cost of the parking? A: An employer can provide a parking space near or close to the place of work to an employee or director, with no reporting requirement and is therefore not a benefit in kind. But if you decide to ask them to salary sacrifice for the cost of this car parking space this will fall under optional remuneration arrangements and will no longer fall under the exemption and will be a reportable benefit. See http://bit. ly/2PAA66U, and http://bit.ly/2Z46emu. n
The national forums are an excellent opportunity to hear from the policy team, as well as other key speakers, on developments in payroll, pension and reward legislation. This event is an excellent networking opportunity with other CIPP members.
* This event is for fully paid associate, full, fellow and Chartered members based in the UK only.
For more information or to book your place: Visit: cipp.org.uk/events Email enquiries@cipp.org.uk
Call: 0121 712 1013 Live chat with us
cipp.org.uk @CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 57 | February 2020
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