Payroll
significant, not only because of the extent of the impact but also because of the sensitivity around the vaccine during the pandemic and the knock-on implications for public health if frontline workers are discouraged from getting the necessary vaccination. Therefore, PSTAX approached HM Revenue & Customs (HMRC) on clients’ behalf to ask, for the current financial year at least, that flu jabs can be treated as exempt from tax/NICs regardless of how they are obtained. There was an outcry when, on 6 July HMRC announced that Covid-19 tests purchased by an employer would be treated as a benefit in kind. The guidance disappeared the next day. By 9 July, it was reversed, with the HMRC guidance and impending legislation now stating that if an employer is providing antigen testing kits to employees to test, outside of the government’s national testing scheme, if they have the virus either directly or by purchasing tests that are carried out by a third party, no income tax or class 1A NICs will be due. These tests had to be covered by a specific measure as they
cost more than the £50 trivial benefit limit. The legislation covering this makes clear that the exemption applies also to reimbursement of costs. Given this recent history, we would hope that a similar common-sense approach be taken to enable employers to reimburse the cost of flu jabs, without tax/NICs consequences. There is of course a new vaccine in town. While the Covid-19 vaccine is currently only available through the NHS, as more vaccines come online there is a real prospect that they will become commercially available relatively quickly. This is likely to cost employers much more than the £50 trivial benefit limit and will therefore be classed as a benefit if employers provide it to staff or reimburse the cost; that is, unless the Treasury instructs HMRC to give a similar
concession. There is another precedent for a one-off concession of this nature; for example, the measure introduced regarding the purchase of home-working equipment. This allows staff working from home to be reimbursed the cost of office equipment during the current tax year without a tax/ NICs liability arising. We believe that there is every justification, in the current climate, for HMRC to apply similar concessionary treatment to the reimbursement of flu vaccinations and, when available, the Covid-19 vaccine. HMRC is currently looking at the arguments that PSTAX have presented to them on behalf of our clients, and we hope to have a favourable answer by the time you read this article. n
...allows staff working from home to be reimbursed the cost of office equipment during the current tax year without a tax/NICs liability...
PAYROLL UPDATE Same great course -brand new name
This course covers: ● The Coronavirus Job Retention Scheme (CJRS) and other developments as a result of Covid-19 ● Tax and NI contributions ● Operating Pay As You Earn (PAYE) This focused update course represents the single best opportunity to be briefed and updated on changes affecting payroll.
● Statutory pay and leave ● Statutory deductions ● Expenses and benefits ● Pension ● Employment rights and other matters
50%OFF for CIPP members *
Duration Two consecutive half days
Delivery Online
CPD 7 points
Updated every seven days**
Book online at cipp.org.uk/training , email enquiries@cipp.org.uk or call 0121 712 1044 for more information.
cipp.org.uk @CIPP_UK
* Terms and conditions apply. ** Correct at time of publication. Course materials checked and updated every seven days.
23
| Professional in Payroll, Pensions and Reward |
Issue 67 | February 2021
Made with FlippingBook - Online magazine maker