PAYROLL INSIGHT
‘Tis the season…
Samantha Mann MAAST MCIPPDip, CIPP senior policy and research officer, revels in the festive spirit
I n 1843, Charles Dickens wrote “I have endeavoured in this ghostly little book to raise the ghost of an idea which shall not put my readers out of humour with themselves, with each other, with the season, or with me. May it haunt their house pleasantly, and no one wish to lay it.” Dickens’ A Christmas carol captured the Victorian era’s enthusiasm for reviving and creating Christmas traditions such as family gatherings, festive generosity and, of course, generous amounts of food and drink. For many of us, those traditions remain a sound basis as we go forward to build our own festive traditions. Though my words will do little to further the traditions of the season, they include a scary story (or two) together with warnings of how the ghost of Christmas past can indeed come to haunt the unwary. Festive quick polls If you have been reading the CIPP’s daily news features you may have noticed the festive themed quick polls that have been running over the last few weeks, seeking
responses on a range of festive pay and reward traditions in the workplace. The CIPP policy team have run these festive polls for a couple of years now. So, thank you to all those who take the time to respond. In the 2016 quick poll, we asked: “If you could choose your Christmas reward what would you choose?”. We received 648 responses, revealing that: ● 30% would choose a Christmas party/ meal ● 56% would prefer a taxable cash equivalent payment (which got my vote), and ● 14% generously prefer to give by providing an equivalent donation to charity. The 2017 quick poll, which focused on employers’ attitude towards festive frivolities, asked: “Does your employer or your business close over the Christmas and the new year period?”. The 695 responses break down, as follows: ● 15% reported there are no closure days ● 47% close for bank holidays, but ● 38% lucky respondents enjoy a
complete Christmas/new year close down. I pause here to acknowledge the increasingly global reach of UK payroll services in the 21st century which increasingly requires 24/7 and 365/6 round the clock, week and year coverage by our profession. I look forward to reviewing the findings of the 2018 festive quick polls. The income tax and National Insurance contributions (NICs) (classes 1, 1A, 1B) implications of providing benefits in kind (BIKs) appear consistently in the top three subjects that the CIPP Advisory Service are asked about – particularly at this time of the year – where it receives questions on gifts, parties and social events. Trivial gifts Historically, the issue of trivial gifts has seen many employers at odds with HM Revenue & Customs (HMRC) officials. Commonly referred to as a trivial benefit, there was until April 2016 no general statutory limit below which benefits would not be taxable; and so, what was deemed to be ‘trivial’ was very much a matter of debate between employers and HMRC. In December 2003, The Telegraph (see https://bit.ly/2EWmz6x) reported ‘happy tidings of great joy’ when revealing that HMRC (well, the Inland Revenue, at
...requires 24/7 and 365/6 round the clock, week and year coverage...
| Professional in Payroll, Pensions and Reward | December 2018 / January 2019 | Issue 46 26
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