The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
Does your benefits package meet your employees’ needs? 5 August 2016
According to a study of 1,000 UK workers in July 2016, almost half think their current employee benefits package is not tailored to their needs.
New research published by payroll lending provider SalaryFinance in line with the UK’s first Smarter Working Day initiative - has found that 38% of UK workers currently have access to flexible working benefits, however, only 26% prefer flexible working conditions to great financial and psychological wellbeing benefits.
Key findings from the survey:
48% of people think their current employee benefits package isn’t tailored to their needs Increase in popularity of ‘work perks’ is not keeping employees happy, as four in ten UK workers feel undervalued Discounted cinema vouchers, nap time, massages, free fruit and coffee are overrated as people want access to more financial and emotional wellbeing benefits Less than one in five (19%) currently have access to benefits designed to support mental wellbeing, such as counselling services, and only one in four (26%) receive financial wellbeing support from their employer. In contrast, one in three (32%) receive ad hoc incentives such as free lunches, birthday cakes and duvet days. With nearly four in ten (39%) current UK workers feeling ‘undervalued’, Asesh Sarkar, CEO of SalaryFinance says that employers must act now to meet ever increasing expectations from employees if they are to attract and retain top talent. “Employers have increasingly realised their responsibility to support their employees in many ways, including providing access to remote working opportunities and occasional free, healthy lunches. These proactive incentives are of course to be welcomed. To make sure employees feel as supported as possible, financial wellbeing should also be factored into employers’ benefits packages. By offering financial education and their benefits this will enable employees to safeguard their financial futures and ensure they’re as happy and productive at work as they can be.” With 58% of people saying that their employer has never asked for feedback on their benefits programme, employers could be falling out of touch with the needs of staff.
Read more about payroll lending provider SalaryFinance .
Payrolling non-cash vouchers and credit tokens 10 August 2016
HMRC has published draft regulations - The Income Tax (Pay As You Earn) (Amendment No. X) Regulations 2016 and a draft explanatory memorandum for a technical consultation.
The draft regulations make changes to the Income Tax (Pay As You Earn) Regulations 2003. These changes allow employers to voluntarily payroll the benefit of non-cash vouchers and credit tokens provided to employees from 6 April 2017. Nothing in these draft regulations affects the obligation set out in section 694 and section 695 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) to operate Pay As You Earn (PAYE) on non-cash vouchers or credit tokens which are regarded as, or are exchangeable for, readily convertible assets. The power to make the amendments to the PAYE regulations is set out in Clause 15 of the Finance Bill 2016 and is currently going through the parliamentary process. The draft regulations are drawn up on the basis that the power will receive Royal Assent in its current form. The consultation is conducted in anticipation of the powers being formally made.
Comments on the drafts should be sent by email to employmentincome.policy@hmrc.gsi.gov.uk by 3 October 2016.
cipp.org.uk
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