POLICY HUB
amount and the gross pay isn’t affected. The calculation of the overall taxable benefit figures is no different for payrolled benefits versus those reported on a P11D. Once the benefit figure is identified, you divide this number by the pay periods for which the benefit is made available and use this figure to add to the employee’s taxable pay for each relevant pay period. The class 1A National Insurance contributions due on the benefits is still paid over at the end of the tax year when you complete the P11D(b). The following link may be of use: https:// ow.ly/9oxf50Rsl9y. You do have to consider NMW / national living wage rates if you’re offering benefits through a salary sacrifice arrangement. For more, visit https://ow.ly/OiyI50RqZv7 and https://ow.ly/eeUl50Rsllb.
address, i.e. the location X office, his home to work commute wouldn’t qualify for business mileage to be paid. Likewise, if you put him up in a hotel it would result in a benefit in kind (BIK) on the cost incurred to the employer, i.e. £300 a week in hotel costs would be £300 a week charged on a P11D to report the BIK. However, if his place of work is his home address, then location X could be deemed to be a temporary place of work, in which case, travel and accommodation costs would be allowable and no BIK would arise. I stress ‘could’ because frequent travel to the same office could be deemed to be a second permanent workplace. See Subheading 3.11 here: https://ow.ly/E40q50RsmMw. Information from HMRC is thorough in this area, so I would advise you to look at the 490 guidance, here: https://ow.ly/ o20y50Rsn0r. As this is based on the contractual and individual working arrangements, we cannot give a definitive answer, but hopefully the above basic rulings along with the guidance pages will give you some clarity.
2-6 SEPTEMBER
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How does payrolling benefits affect the minimum wage?
IR35 workers and automatic enrolment Q: We have assessed someone who falls inside IR35 and need to put them through the payroll under pay as you earn (PAYE) for their payments. Do I need to legally enrol them in a pension? A: Workers who fall inside of IR35 aren’t classed as employees. They’re called ‘deemed employees’ for PAYE purposes only. They don’t have employment rights such as NMW protections, holiday pay / entitlements or rights to join a work-based pension scheme. For ease of reference, here’s a link to the guide substantiating this: https:// ow.ly/6l8Y50RslJj. Mileage claims for business travel Q: I have a member of staff who lives in Sunderland but his official place of work is in Stoke on Trent. We provide a hotel from Monday to Friday and he travels around sites from the Stoke on Trent office. Is he able to claim business mileage for these trips? A: If your staff member has a fixed work
What are the guidelines for business travel mileage claims?
Shared parental pay and leave rules Q: Is SMP paid in weekly blocks? Can someone take 37 weeks and two days’ SMP and then transfer the remaining eight days’ payment to their partner under shared parental pay and leave? A: SMP is a weekly payment which is confirmed here: https://ow.ly/ wTbc50RsnjV. Shared parental leave can be taken in blocks but a block must be a minimum of one week at a time. Please see the following extract: “Shared parental leave may be taken in a single continuous block or may be taken in smaller blocks of leave (a minimum of a week at a time), interspersed with time at work (in contrast to maternity leave which has to be taken in a single continuous block).” For more, see https://ow.ly/fZSw50RBlxK. n
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| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
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