MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Pregnancy-related absences Q: A pregnant employee has been absent due to pregnancy-related illness for several months. Her due date is fast approaching. If she’s still absent four weeks prior to her due date, should her maternity leave start instead? A: When a woman is absent from work due to her pregnancy on or before the start of the fourth week before the week the baby is due, the maternity pay period starts on the day after the first complete day of absence after the start of the fourth week. This rule is intended to help to ensure the welfare of the expectant mother and her baby. Useful links can be found here: https:// ow.ly/3Ewm50XgpMg and here: https:// ow.ly/JcFx50XgpYI. The statutory maternity pay (SMP) tables for 2025 are useful here too – https:// ow.ly/gkQn50XgpSB – this tool can be used to confirm the start of the fourth week before the week the baby is due, which can be found in the far right column.
threshold, meaning the event would be taxable and we’d have to add it to our pay as you earn settlement agreement (PSA). If staff paid the excess over £150, would that remove the tax liability? A: The £150 per head for annual functions under Section 264 of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 is an exemption, not an allowance. Therefore, if the cost exceeds £150 per head (including value added tax), then the whole amount is chargeable to tax, and there’d be a requirement to report on P11Ds or a PSA, if there’s one agreed with HM Revenue and Customs (HMRC). There’s further information available here: https://ow.ly/z88650XgqfS. Payment of keeping in touch (KIT) days Q: Our organisation has updated its occupational maternity pay (OMP) policy and is paying staff in full during maternity leave. If an employee completes KIT days while receiving full paid OMP, does the employer need to pay them for those days? A: KIT days should observe at least national minimum wage (NMW) rates. The employee should agree the pay for their KIT days with their employer in advance of carrying them out. The following link may be useful here: https://ow.ly/7x8q50XgqAL. Tax implications of providing school uniform vouchers Q: Would providing school uniform vouchers to employees (for their children) be considered a benefit in kind (BiK)? A: That’s correct, vouchers are taxable benefits. If they’re exchangeable for goods
and services only, the liabilities would need to be settled on a P11D for tax, and the value would need to be subject to Class 1 National Insurance at the time of their provision through the payroll, as confirmed in the guidance to be found here: https:// ow.ly/vMv550XpRjl.
Is providing school uniform vouchers to employees classed as a BiK?
Holiday pay calculations for irregular hours and part-year workers Q: For anyone on a zero-hours contract, or who’s classed as an irregular or agency worker, are they eligible to receive average holiday pay, with a lookback period of 52 weeks, in addition to the 12.07% we use for calculating this? A: For irregular hours workers and part- year workers there, are two methods for calculating holiday hours and pay: 1.) Calculate 12.07% of the total hours worked each pay period, to accumulate a bank of hours to be taken as holiday as and when the employee likes. The holiday pay for those banked hours would then be calculated using the 52-eek average holiday pay method as and when the leave is taken, looking back up to a maximum of 104 weeks to obtain the 52 weeks’ worth of pay to calculate the average.
How do we treat the cost of our Christmas party for tax purposes?
Christmas party costs Q: We have a query regarding the £150 per head rule for Christmas parties. At present, the estimated costs for the event will exceed the £150 per head
| Professional in Payroll, Pensions and Reward | December 2025 - January 2026 | Issue 116 8
Made with FlippingBook - Online magazine maker