CIPP Payroll: need to know 2019-20

Similarly, if your organisation intends to, or currently does, payroll benefits, there is a one-day training course that provides guidance on processing Benefits in Kind (BIK) through payroll. This is an increasingly popular method of providing and administering benefits and the next course is being held in Bristol on 18 December 2019.

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Approved professional organisations and learned societies (list 3) 4 December 2019

HMRC has updated the list of professional bodies and learned societies (also known as List 3) with tax-deductible fees.

For some professional organisations, members can claim tax relief on fees or subscriptions.

List 3 shows all organisations whose members qualify for a tax deduction on professional fees and subscriptions pertaining to that organisation.

The list is updated periodically and includes all bodies approved by the commissioners for HMRC.

HMRC usually lists the names of any additions, deletions and amendments but on this occasion, has only advised the number of changes that have been made - there has been four additions, three amendments and one deletion. Professional organisations can apply for approval for tax relief using form P356.

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Trivial Benefits in Kind 16 December 2019

In light of the fact that many employers choose to present their staff with various gifts and benefits over the festive period, the most recent Employer Bulletin provided some useful information relating to Trivial Benefits.

The guidance was aimed to ensure that employers treat benefits correctly in terms of the application of tax and National Insurance (NI) and whether they need to notify HMRC about a benefit or not. A benefit can be classed as a Trivial Benefit when all the rules below apply:

The cost of the benefit does not exceed £50

• The benefit is not in the form of cash or a voucher redeemable for cash • The benefit is not provided as part of salary sacrifice arrangements or any other contractual obligation • The benefit is not provided in recognition of services • Contractual obligation

The Bulletin offered tips around the area of contractual obligation and advised businesses that any of the following may be viewed as contractual in the eyes of the law:

A side letter to the main contract document

• • • • • •

A staff handbook

A letter of appointment A redundancy agreement An employer union agreement Any legitimate expectation

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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