Payroll insight
trip travel which is generally not well served by public transport. At its simplest, you can purchase a suitable fleet of cycles and make them available to employees either on a one-to-one or a pool basis. Government investment Through the Cycling and walking investment strategy (http://bit.ly/2m03dEF) which outlines its ambition to make cycling and walking a natural choice for shorter journeys, or as part of longer journeys by 2040 (in England), the government plans to invest approximately £2 billion on ‘active travel’ (like walking or cycling) over the course of this Parliament. This would see a doubling of the spending per head when compared to the last Spending Review period. Also announced in June this year, is that an extra 2,300 cycle spaces are to be built at 48 stations across England, enabling commuters to cycle directly to the station and lock up their bike securely. The Cycle Rail programme has already tripled the number of cycle parking spaces at more than 500 stations, bringing the total to over 80,000. The Cycling and walking investment strategy also highlights that physical activity
helps to prevent and manage more than twenty chronic health conditions and is also linked to overall health benefits which can result in increased productivity and reduced absenteeism at work. A rise in workers using bikes to commute brings not only financial benefits from tax and NICs exemptions but also benefits to the workplace, on many levels.
to all colleagues. ● If the value of goods hired by the
employer to the employee exceeds £1,000, it is acceptable provided the requisite FCA authorisation is obtained. ● Cycle-to-work schemes do not need approval from HM Revenue & Customs (HMRC). The tax authority does however provide general information (http://bit. ly/2KKdOgV) for employers regarding salary sacrifice. There are of course various other forms of travel for workers which benefit from tax and NICs exemptions. For example, as an employer you will be exempt from reporting or paying anything if the cost is for: ● a works bus service ● an employee with a disability (in certain circumstances) ● a taxi home after occasional and irregular late-night working ● a taxi home if a car-sharing system is temporarily unavailable ● travelling to work because public transport has been disrupted by industrial action. HMRC’s 490 Employee travel (http://bit. ly/2TOS2v9) is the employer’s ‘must have to hand’ guide to the tax and NICs treatment of business travel by employees. n
...increased productivity and reduced absenteeism at work
Considerations If you are considering setting up a cycle-to- work scheme, then there are some areas to bear in mind: ● The employee must not sacrifice salary to a level below the minimum wage (you can offer the employee a lower value package and/or a longer than usual hire period or hire a cycle to the employee without a salary sacrifice arrangement). ● The scheme should generally be available
CEO pay ratio reporting
Online course
Make sure that you can accurately calculate and report CEO pay ratios ahead of your reporting deadline and comply with the new legislation.
This course covers: ● Background
❍ Reason for the policy ❍ Companies affected and when
● CEO pay ratio reporting requirements ❍ Choosing a calculation methodology ❍ The overlap with gender pay gap reporting ❍ Data definitions and collection ❍ Calculating the pay ratios ❍ Publishing the data ❍ Supporting information and explanation ● Compliance
❍ Criminal liability and fines ❍ Media scrutiny and analysis
Book online at cipp.org.uk/training , email info@cipp.org.uk or call 0121 712 1000 for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
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