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employees are being transferred and subject to the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE). As some of these employees are currently in a childcare voucher (CCV) scheme, we wish to transfer them to our CCV provider. If we do this will the employees still benefit from the income tax and NICs exemption or will it be viewed as the employees entering into a new scheme and so losing the right to the exemption? A: When an employee transfers under a TUPE agreement, all of their contractual rights remain and are protected. The only change that should affect the employee is who they are now being paid by. If you have a scheme in place, the employee can join this scheme and still benefit from the tax and NICs relief. If you as an employer didn’t have a scheme in place, then you could open a new scheme for the employees under the proviso that all the employees were in a qualifying scheme prior to midnight of 4 October 2018. Entry to new applicants would not be allowed into the scheme and no relief could be gained. Q: If an employee is on sick leave, do we have to have the original Fit note in order to process statutory sick pay (SSP)? We are the employee’s second employer and she has given the note to her other employer. A: You cannot withhold SSP if the Fit note is received late. If you know that there is a note to follow, you should process SSP as normal. The Fit note itself is the property of the employee and they should be given this back after an employer has taken a copy. The employee should ask for the original back from the other employer so that you can take a copy for your records. You may this link useful: https://bit. ly/2qArn7D. n
leave, then they can agree separate arrangements for the extra leave, if it hasn’t been taken. Q: A new colleague has challenged the process we have in place for a new starter who lives in Scotland. This colleague has implied that if the new starter declaration shows a Scottish address we should use the emergency tax code of S1185L. Is this correct? A: I can confirm that you would not use S1185L month 1 in this situation. Only if you have a P45 form showing a tax code with a ‘S’ prefix would you use the Scottish prefix for a new starter. If you only received a new starter declaration from the employee, then you can only use 1185L month 1 until HMRC notifies you via a P6 coding notice that the Scottish prefix is correct. Q: We have previously provided a flu jab to our employees ‘on site’ which we know is not deemed as a taxable benefit. We are looking to change this by providing a ‘flu jab voucher’ to all employees to enable them to receive a flu jab at their local Boots store. By giving employees a voucher for a flu jab would this now be deemed as a taxable benefit? A: I can confirm that either method of providing your employees with the ‘flu jab’ vaccination is perfectly acceptable and whichever approach you decide to take neither will be a benefit in kind so will not be reportable to HMRC. Q: We have a client who owns a hair salon. The customers pay the stylists tips but they go through on a card transaction and the owner gives the employee the cash for the tips. I am not sure if they should be recording these tips on their payroll and if so should the tips be subject to income tax and NICs? A: The GOV.UK online guidance on tips, which can be found here: https://bit. ly/2JOM0py, explains that when it is the employer who decides how the ‘tips’ are shared means it is the responsibility of the employer to ensure that the cash payments given to their employees should be processed through the payroll and subjected to class1 NICs and income tax. Q: We have recently acquired a new company where more than 100
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Issue 46 | December 2018 / January 2019
| Professional in Payroll, Pensions and Reward |
*correct at time of publication
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