If you’re ever tempted to enter an avoidance scheme, remember that you can end up significantly worse off. HMRC published guidance on those Tempted by Tax Avoidance and publications that guide taxpayers through the misleading statements promoters may make.
If the scheme looks too good to be true, it almost certainly is: being paid in gold bullion is clearly extremely unusual and should be a warning to anyone looking at this kind of scheme not to get involved.
To get out of a gold bullion tax avoidance scheme before HMRC challenges the arrangements in court, and you don’t have a contact, you should email: ca.admin@hmrc.gsi.gov.uk .
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Guidance on Optional Remuneration Arrangements and Voluntary Payrolling 1 September 2017
The software specifications for the 2017-18 P11D and P46 (Car) reporting from April 2018 are now available.
HMRC’s Software Developers Support Team (SDST) has shared the following guidance on Optional Remuneration Arrangements (OpRA) and Voluntary Payrolling:
New rules for benefits in kind where they are provided in conjunction with Optional Remuneration Arrangements
From 6 April 2017, income tax and National Insurance contributions (NICs) advantages associated with OpRA (Optional Remuneration Arrangements) have been largely withdrawn. OpRA includes, salary sacrifice, cash allowance and flexible benefit packages with a cash allowance.
The new rules do not apply to pension contributions, childcare vouchers, workplace nurseries, directly employer contracted childcare, cycle to work or cars with CO2 emissions of 75g / km or less.
Where a BiK is provided as part of OpRA, the taxable value is now the higher of the taxable value of the BiK under the normal rules or the amount of salary/cash foregone. This is the value you use for calculating the income tax, Class 1 or Class 1A NICs, where liable, in respect of the BiK. Where a BiK provided through OpRA would otherwise be covered by an exemption, that exemption no longer applies. The value to be compared with the amount foregone in determining the taxable amount is nil. The taxable amount and amount liable for NICs, therefore, is the amount foregone.
Employers are strongly advised to refer to the new legislation and our Technical Guidance in the Employment Income Manual (EIM) and Booklet 480 .
What do I have to do? You need to familiarise yourself with the new rules.
If your employees give up salary or a cash alternate for any other BiK you need to follow the new rules. You need to report the revised taxable value (the higher amount of the value of the BiK applying the normal rules or salary/cash foregone) on the P11D or through voluntary payrolling. You don’t need to do anything if your employees are giving up salary for only pension contributions, childcare vouchers, workplace nurseries, directly employer contracted childcare, cycle to work or cars with CO2 emissions of 75g / km or less. When do I have to do this? The new rules came into effect on the 6 April 2017. Arrangements entered into before 6 April 2017 are protected until the earlier of: i) The variation, renewal or auto-renewal of the arrangements, and ii) 6 April 2018, except for cars (with CO2 emissions above 75 g /km), accommodation and school fees when the latest date for the new rules starting is 6 April 2021. These types of BiKs are not affected by the new rules.
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