Policy News Journal - 2016-17

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

Additionally, for some benefits-in-kind they have highlighted the practical difficulties of complying with the dates in legislation, which has to a large part led to the inconsistencies with HMRC guidance.

The recent introduction of new dates for making good on benefits-in-kind where the employer accounts for the benefit-in-kind in real time through PAYE (payrolling) has highlighted the lack of consistency and potential for confusion. The government has now issued a consultation document exploring the scope for aligning the making good rules for benefits-in-kind with those where the employer accounts for the benefit-in-kind in real time through PAYE.

The CIPP has created a survey to collect your views to enable us to respond to this consultation document. The survey should take around 10 minutes to complete and will close on 26 September 2016.

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CIPP Survey: Consultation on salary sacrifice for the provision of BiKs 16 September 2016

The CIPP Policy team has produced a brief survey to gather your views, experience and evidence (where possible) of the possible impacts on your current pay and P11D processes and policies as a result of the proposals laid out in the consultation on salary sacrifice for the provision of benefits in kind. Impact on Payroll, HR and Tax software products We would particularly like to ask members who work within the software industry or who develop software in- house to consider the timeline proposed.  Can you detail the challenges that will arise as a result of the time line, given that there will be elements changed within the P11D (to be submitted by 6 July 2018) to accommodate change?  What impact will these changes have to the structure of Software design that will be used by employers who have elected to voluntary payroll when the change is due to become effective from 6 April 2017?  Is the timeline achievable?

HMRC is consulting on limiting the tax (and NIC) advantages to be gained via:

 Salary Sacrifice  Salary Exchange  Flex benefits packages where the employee has free choice between taking the benefit or the cash salary.

What is made clear in the consultation paper is that the following items will remain unchanged where they are provided as part of a Salary Sacrifice arrangement:

 employer pension contributions;  employer-provided pension advice based on the recommendations of the Financial Advice Market Review (FAMR);

 employer-supported childcare and provision of workplace nurseries; and  cycles and cyclist’s safety equipment which meet the statutory conditions.

The survey questions look to gather your views, experience and where possible, evidence of the changes proposed.

Each question offers a comments/further details box and we encourage you to share the detail behind your response.

If you can also provide evidence of impact or of the benefits to be gained by BIKs not included in the list above please contact Samantha Mann, Senior Policy & Research Officer at policy .

The survey will close on 16 October. The consultation paper can be found at GOV.UK.

Thank you in advance for your time and input.

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