The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Consultation is ongoing until 2 February 2017 and if you have any views, thoughts or concerns that you would like us to raise in our feedback please contact Samantha Mann via email at policy .
Equally if you are currently looking ahead and considering the additional cost of administering the new rules and would like to provide evidence for some research currently being undertaken, again please contact Samantha via the policy email, ideally (but not exclusively) by 18 January. If you have been overlooking the December publications because you don’t operate Salary Sacrifice but you do offer a cash alternative to some/all BiKs you might want to review all current publications, full details are available through the CIPP Policy News Journal under ‘ General Expenses, Benefits & Reward News’.
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Will salary sacrifice changes damage employee engagement? 23 January 2017
More than a quarter (27%) of employer respondents to a survey conducted by Jelf Employee Benefits believe that the limitations on salary sacrifice arrangements will damage employee engagement and employee relations.
Its 2017 Jelf employment survey , which surveyed approximately up to 350 employers across England and Wales, also found that 47% of respondents do not think that Chancellor Philip Hammond has given employers enough time and warning with regards to the changes, which will limit the range of benefits that attract tax advantages when offered through a salary sacrifice arrangement (from April 2017).
The research also found:
24% of respondents will need to make adjustments to their benefits package in light of the salary sacrifice changes. 75% of respondents do not believe employees will fully understand the limitations of the Lifetime Isa (Lisa). 26% of respondents expect some employees to save into a Lisa instead of a workplace pension. 90% of respondents believe the introduction of new saving options in the Budget 2016, such as the Lisa, increases the need for financial education in the workplace. 89% of respondents want greater emphasis and encouragement from the government towards the provision of employee benefits targeted at carers. 83% of respondents do not think their organisations are aware of all employees who act as carers in their non-work time.
Read more from Employee Benefits .
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Employer provided childcare vouchers and Scottish Income Tax 8 March 2017
This article is intended to provide clarification around the income levels used to calculate the appropriate tax and NICs relief for childcare vouchers following the introduction of the Scottish rate of income tax.
Eligibility to tax-free childcare vouchers depends on an employee’s income level. Employers have to estimate the employee’s relevant earnings for the tax year since the ‘exempt’ amount of childcare vouchers is based on their relevant earnings.
S270A of Income Tax (Earnings and Pensions) Act 2003 sets out the levels of income at which the exempt amount changes.
If the estimated relevant earnings amount:
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