Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

“Employers have increasingly realised their responsibility to support their employees in many ways, including providing access to remote working opportunities and occasional free, healthy lunches. These proactive incentives are of course to be welcomed. To make sure employees feel as supported as possible, financial wellbeing should also be factored into employers’ benefits packages. By offering financial education and their benefits this will enable employees to safeguard their financial futures and ensure they’re as happy and productive at work as they can be.”

Read more about payroll lending provider SalaryFinance .

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Payrolling non-cash vouchers and credit tokens 10 August 2016

HMRC has published draft regulations - The Income Tax (Pay As You Earn) (Amendment No. X) Regulations 2016 and a draft explanatory memorandum for a technical consultation.

The draft regulations make changes to the Income Tax (Pay As You Earn) Regulations 2003. These changes allow employers to voluntarily payroll the benefit of non-cash vouchers and credit tokens provided to employees from 6 April 2017. Nothing in these draft regulations affects the obligation set out in section 694 and section 695 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) to operate Pay As You Earn (PAYE) on non-cash vouchers or credit tokens which are regarded as, or are exchangeable for, readily convertible assets. The power to make the amendments to the PAYE regulations is set out in Clause 15 of the Finance Bill 2016 and is currently going through the parliamentary process. The draft regulations are drawn up on the basis that the power will receive Royal Assent in its current form. The consultation is conducted in anticipation of the powers being formally made.

Comments on the drafts should be sent by email to employmentincome.policy@hmrc.gsi.gov.uk by 3 October 2016.

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Consultation on salary sacrifice for the provision of benefits in kind 12 August 2016

The government is seeking views about limiting the range of benefits-in-kind that attract income tax and National Insurance contributions (NICs) advantages when they are provided as part of salary sacrifice arrangements.

As announced in Budget 2016 the government is concerned about the growth of salary sacrifice schemes and is therefore considering limiting the range of benefits that attract income tax and NICs advantages when they are provided as part of salary sacrifice schemes. The purpose of this consultation is to explore potential impacts on employers and employees should the government decide to change the way the benefits code applies when a benefit-in-kind is provided in conjunction with a salary sacrifice or flexible benefit scheme. Employee contributions to employer-provided pensions, employer-provided pension advice, employer-supported childcare and provision of workplace nurseries and cycles and cyclist’s safety equipment provided under the cycle to work scheme will remain unaffected by this measure.

The consultation on salary sacrifice for the provision of benefits in kind will run until 19 October 2016 . Watch out for a survey from the CIPP Policy team as we will be asking for your feedback to inform our formal response.

The government will publish details of the consultation responses and expects to make an announcement at


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