PAYROLL
throughout 2020/21 and 2021/22, employees who were made to work from home for even one day would pass the tests. This easement is still in place for the 2022/23 tax year, but unless we see further lockdowns or home working mandates, it’s unlikely many hybrid workers will continue to qualify. This poses the question: does the legislation need to change to accommodate new hybrid ways of working? For many businesses, hybrid working is still relatively new, and with so many rules rooted in case law from before its prominence, it may be time for some changes. Reimbursement of equipment Finally, covered by ITEPA 2003 Section 316 (http://ow.ly/qjwA30sjyNW) is the reimbursement of equipment to workers. This became particularly relevant during the pandemic, when working requirements changed suddenly and equipment was required by employees working from home. Up until 5 April 2022, equipment bought by employees could be reimbursed, without the requirement to report and pay tax if the employee: ● agreed the purchase with their employer in advance
● mainly uses the item for business ● keeps the equipment.
● are provided for the sole purpose (see EIM21614: http://ow.ly/Z3Nr30sjzKA) of enabling the employee to perform the duties of the employment, and ● the individual uses in performing the duties of the employment, and any use for the employee’s private purposes isn’t significant (see EIM21613: http://ow.ly/ CRNi30sjzKE). This may cover equipment such as computers, printers, stationery and furniture. If equipment was provided by the employer (not reimbursed), tax won’t be applicable if the equipment is returned to the employer, usually at the end of employment. If the ownership of the item is transferred to the employee at any time, this will become an employee benefit. What will the future hold? Expenses for home workers can be a tricky area to navigate, and with more people than ever working remotely, either full-time or on a hybrid basis, this will be an area of consideration for many payroll professionals. Could there be future reform here to reflect the growing proportion of UK workers it impacts? Only time will tell… n
From 6 April 2022, any coronavirus- related changes ceased, and the standard rules are applied. There’s no tax charge on the expense an employer incurs in providing directors and employees with supplies and services that: ● are provided other than on the employer’s premises (e.g., employees who work at home or while travelling) (EIM21611: http:// ow.ly/troI30sjzKv), and For many businesses, hybrid working is still relatively new, and with so many rules rooted in case law from before its prominence, it may be time for some changes
Certificate in Pensions Administration CAN YOU AFFORD FINES OF £10,000 * A DAY FOR NON-COMPLIANCE? The Certificate in Pensions Administration has been developed with pension practitioners to ensure that it meets the needs of the industry. It provides payroll and pension staff with relevant training so businesses can safeguard against the financial risk for non-compliance.
CPD 15 points
Visit cipp.org.uk/study , email enquiries@cipp.org.uk or call 0121 712 1044 for more information.
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| Professional in Payroll, Pensions and Reward |
Issue 81 | June 2022
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