The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
Consultation on salary sacrifice for the provision of benefits in kind 12 August 2016
The government is seeking views about limiting the range of benefits-in-kind that attract income tax and National Insurance contributions (NICs) advantages when they are provided as part of salary sacrifice arrangements.
As announced in Budget 2016 the government is concerned about the growth of salary sacrifice schemes and is therefore considering limiting the range of benefits that attract income tax and NICs advantages when they are provided as part of salary sacrifice schemes. The purpose of this consultation is to explore potential impacts on employers and employees should the government decide to change the way the benefits code applies when a benefit-in-kind is provided in conjunction with a salary sacrifice or flexible benefit scheme. Employee contributions to employer-provided pensions, employer-provided pension advice, employer-supported childcare and provision of workplace nurseries and cycles and cyclist’s safety equipment provided under the cycle to work scheme will remain unaffected by this measure. The consultation on salary sacrifice for the provision of benefits in kind will run until 19 October 2016 . Watch out for a survey from the CIPP Policy team as we will be asking for your feedback to inform our formal response. The government will publish details of the consultation responses and expects to make an announcement at Autumn Statement 2016 on decisions made in light of those responses. Any policy changes are expected to feature as part of Finance Bill 2017.
Consultation on alignment of dates for making-good on benefits-in-kind 12 August 2016
A consultation has been published to explore the scope for aligning the ‘making good’ rules for benefits-in-kind with those which apply to ‘making good’ where the employer accounts for the benefit-in-kind in real time through PAYE.
It was announced at Budget 2016 that the government would consult on proposals to align the dates by which an employee has to make a payment to their employer in return for a benefit-in-kind they receive, in order to ‘make good’.
The aim is to have a simpler and clearer system that makes it easier for employers and employees to understand their obligations.
The consultation on alignment of dates for making-good on benefits-in-kind will run until 4 October 2016 . Watch out for a survey from the CIPP Policy team as we will be asking for your feedback to inform our formal response.
The government will publish details of the consultation responses and expects to make an announcement at Autumn Statement 2016 on any decisions made in light of those responses.
Worldwide subsistence rates 12 August 2016
The benchmark scale rate expenses payments for employee travelling outside the UK are to remain the same for the year commencing October 2016.
The Worldwide subsistence rates published in October 2014 will continue to apply for the year commencing October 2016.
cipp.org.uk
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