PART 2: TAX
are provided under a salary sacrifice arrangement. The OpRA rules will not apply.
From 6th April 2020 it was announced that for 12 months the exemption would continue to apply even if the cycle was not being used for “qualifying” journeys and this temporary easement was then extended again in April 2021. This applies to employees who have received employer funds cycle and safety equipment on or before 20th December 2020. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS CANTEEN FACILITIES Where an employer provides free or subsidised meals, provided the facility is available to all employees, such provision or subsidy is exempt from tax. Where an employer operates more than one site, provided the benefit is available to all employees the exemption applies, and should the facility not be available on all sites the same would apply provided employees could receive the benefit of the service were they to visit a site where the facility is available. From April 2011 the exemption does not apply if the meals are provided as part of a salary sacrifice or flexible benefits scheme. CAR ALLOWANCE ENHANCED REPORTING SCHEME (CAERS) A scheme, replaced in April 2002, which allowed employers to report profit or excess expenditure on mileage allowances paid to employees on an individual basis. The employer had to apply HMRC’s authorised car mileage rates (see FPCS) to the full amount of each employee’s qualifying business mileage to calculate the amount to be set off against allowances paid. CAR FUEL BENEFIT Where private fuel is provided, or paid for by an employer, for use in a private or company car, a liability for tax is to be charged against the employee. Originally this was based on fuel benefit scale rates determined by the engine capacity of the vehicle. If the employee makes good the cost of all fuel provided for private use, the benefit charge is reduced to zero. HMRC accept reimbursement has taken place if at least the advisory fuel rates are used see page 102. From 6th April 1992 to 5th April 1998 separate rates were set for diesel users and from April 2003 the Car Fuel Scale Charge was renamed the Fuel Benefit Charge and was linked to the vehicle’s CO2 emissions.
Car Fuel Scale Charges - from 1988/1989 to 1991/1992 No printing, copying or reproduction permitted. 0-1400 ccs £ 1401-2000 ccs £ 480 600 480 600 480 600 480 600
2001 ccs + £
Year
1988/1989
900
1989/1990
900
1990/1991
900
1991/1992
900
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