POLICY HUB
P11D, EXPENSES AND BENEFITS TRAINING COURSE COLLECTION
be branded) via a PAYE settlement arrangement (PSA). A: If the uniform contains the company logo and is arranged by and paid for by the employer, it’s an exempt benefit, so no reporting is required. The supply of tights and shoes, however, would need to be reported, so you would either: l include them in forms P11D, or l write to HMRC requesting those items be included in your PSA agreement. The deadline for applying for a PSA is 5 July following the first tax year it applies to. More information regarding PSAs is available here: http://ow.ly/xFeT50NLB6f. Q: A client wants employees to have the option of purchasing company merchandise via net deduction from pay. These items would be slightly discounted, therefore less than what the general public would pay, so would any benefit in kind be created here? A: We’ll have to consider marginal costs here to establish if a benefit in kind is reportable. An example within HMRC guidance states: “A brewer provides beer to its employees at a staff discount. The beer is of the same type and brewed at the same time as that the brewer sells normally. There is marginal additional expense to the brewer of providing the benefit to its employees. That additional expense is: l the cost of the malt, hops and water in each pint l the excise duty paid on the employees’ beer and l any overhead costs which would have been saved if the employees’ beer had not been brewed and distributed, such as the heating costs of boiling that much extra wort, or extra staff and transport costs in handling the brewing and distribution processes. If the total of those additional costs exceeds what the employees pay for the beer (see “making good” at Employment Income Manual 21120) then there is a chargeable benefit.” This guidance can be located here: http:// ow.ly/NYHB50NP533. You’ll need to ask the question, ‘did the costs of providing those items exceed the costs the employee paid?’ If so, there’s a benefit in kind to report. Do be mindful of NMW compliance around deductions or payments for the employer’s own use and benefit. n
included in the real time information end of year return. Therefore, as all directors have other jobs, a PAYE would need creating for this limited company. Responsibility for P60s following transfer of undertakings protection of employment (TUPE) transfers Q: A large TUPE transfer came into one of our clients on 1 April 2023. We didn’t run the payroll for the group of staff until the normal payroll run for month one of tax year 2023/24. There’s a question regarding who is responsible for producing the P60s for the staff. The previous employer and provider aren’t providing us with the relevant pay details, while also refusing to produce the P60s for the staff. Is there anything that confirms who is legally responsible for the P60s? The staff wouldn’t have received another payment in 2022/23 following month 12 had they remained with the old employer. A: The responsibility should lie with the legal employer as at the 5th April. This is why it’s so important that the receiving employer obtains all the payroll data for the previous six years, plus current from the previous employer. If you don’t have the facility to produce the P60s, then arrangements should be made for the previous payroll provider to provide the information to you. Planning for TUPE transfers months in advance is extremely important to ensure the process runs as efficiently as possible to avoid any distress to the affected employees. Please see TUPE transfer plan checklists, as they’re very helpful: http:// ow.ly/fLQ550NLCov. Tax treatment of branded and unbranded uniforms Q: Could we have some clarity regarding the tax treatment of branded uniforms? The employer is paying for the cost of the clothing, with no contribution from the employee, so I’m trying to establish if we still need to report the branded uniform to HMRC. Ideally, we want to avoid compiling any P11Ds, and would prefer to report any costs which need to be reported (e.g., tights and shoes that cannot
Duration Varies dependant chosen options
Our P11D, expenses and benefits course collection is essential whatever stage of your payroll career. With fines reaching up to £3,000 for each incorrect P11D submitted, whether you’re new to the process or just looking for a refresher, this course will cover everything you need to know.
Find out more and choose the P11D courses that are right for you at cipp.org.uk/training
Prices starting at £199 + VAT dependant on course options chosen
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
Prices correct at time of publication
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