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orders (e.g. direct earning attachments or deduction from earnings orders), there’s no maximum limit. The tax treatment of expenses incurred by an employee’s wife Q: A client would like to pay the hotel expenses for an employee’s wife. The employee was working away from home and suffered a stroke. The employee has made payment for the hotel and submitted it to the employer. Is this classed as a benefit in kind (BIK)? A: Although the employer has acted in a very considerate manner, this would, unfortunately, still be classed as a BIK. As the employee was working away from home on business, the cost of their hotel stay is fine, but the wife’s tax liability will need to be reported on the employee’s record. This could be via P11D, or a pay as you earn settlement agreement (PSA). Under the circumstances, we suggest the client contacts HMRC to ask to add this to a PSA, meaning the client will cover the tax and pay class 1B NICs. As the employer didn’t pay for this directly and it has been reimbursed to the employee, if it isn’t included on a PSA, it will be reported on the P11D as a pecuniary liability or disallowable expense. This will be taxable and subject to employee and employer class 1 NICs.
of pay elements to be included in the calculation: l salary l allowances (car, shift, callout, etc.,)
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l overtime l bonuses l statutory payments l occupational payments
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l anything which is BIK cash-based, such as a pecuniary liability (box B on P11D), vouchers and credit cards (box C on P11D) and expenses (box N on P11D). For more information, please see here: https://ow.ly/ R8Pi50QpxAz. When do new national minimum wage (NMW) rates apply from? Q: Please can you advise when I pay the new NMW rate which comes into force in April 2024? There’s confusion regarding when this must be paid to weekly and monthly paid staff. A: For the increase to NMW taking effect from pay reference periods beginning on or after 1 April 2024, you must look at the start date of the pay reference period. If that is prior to the 1 April 2024, the old rate applies, but if the start of the pay reference period is on or after 1 April 2024, the new rate applies. There are examples in the following link from the Advisory, Conciliation and Arbitration Service: https://ow.ly/ zjEk50Qn1So.
Duration Two consecutive half days for online option OR one full day for face-to-face option
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How do you treat e-vouchers for tax and NI purposes?
How do you treat e-vouchers for tax and NI purposes?
Would a payment made to an employee in relation to their wife’s hotel expenses be subject to tax and NI?
When exactly in April 2024 do the new NMW rates apply from?
Which payments are included in the apprenticeship levy calculation? Q: We would like some guidance in relation to the apprenticeship levy. Can you confirm if statutory payments, such as statutory sick pay and SMP should be included in the calculation for the apprenticeship levy? A: The apprenticeship levy is calculated based on the total amount of earnings on which an employer is liable to pay class 1 secondary NICs. Here are a few examples
Can you claim the EA even if you only take on seasonal workers? Q: We have a new client that intends to take on five employees who will work every year for a few weeks at a time. Can the client claim the EA? A: Yes, if they meet the criteria. They must be a business or charity with employers’ class 1 NICs of less than £100,000 in the previous tax year. Please see here for further guidance: https:// ow.ly/rGQ050Qn23A. n
*Price correct at time of print and based on CIPP membership with eligible grade booking the online delivery of the course.
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
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