This course covers the statutory framework for payrolling benefits, highlighting the implications and opportunities, as well as the tax and National Insurance contributions (NICs) treatment of expenses and Benefits In Kind (BIK).

Please note: Materials for this course will be made available via an online platform, however a selection of this materials will need to be printed off and brought with you on the day.

Login details for the online platform will be sent to you ten days before the course start date.

If you have any problems or questions, please email admin@cipp.org.uk.

Why you should attend

The option to process benefits-in-kind through the payroll is becoming increasingly popular with employers.

 

This course provides the opportunity to comprehend the mechanics of payrolling benefits, the steps to incorporating it to their payroll practices and handling more complicated circumstances in this field. Updates on various fields of benefits and expenses are also covered.

 

This course is primarily aimed at those considering on implementing this initiative, but with also benefit those working in organisations who already payroll benefits

 

The course is suitable for delegates that have the following suggested roles:

  • Payroll coordinators
  • Payroll supervisors
  • Payroll managers
  • Finance managers
  • Reward managers

What you will learn

To provide delegates with an update on relevant changes to tax calculations of benefit and expense and a comprehensive appreciation of the framework for payrolling of benefits to facilitate a smooth introduction and management of payrolled benefits in their organisations.

 

  • Understand the statutory framework for voluntary payrolling benefits and expenses
  • Be aware of the tax and NICs changes for optional remuneration arrangements in April 2017
  • Be able to review and update existing policies

Course content

  • Statutory exemption for qualifying business expenses
    • How to reduce the risk of revocation and back-dated tax liability
    • Transitional arrangements for bespoke scale rates
    • End of the dispensation regime
  • Review current expense policies
    • Earnings where employees are entitled to income tax deduction
    • What needs to be reported to HMRC
    • Travel and subsistence
    • Homeworker
    • Current benchmark scale rates for meal allowances
  • Statutory exemption for trivial benefits
    • Identifying trivial benefits
    • Restrictions
    • Effect on end-of-year reporting
  • Abolition of the £8,500 threshold
    • Impact on benefits for low earners
    • How this affects employers
    • Impact on end-of-year reporting
  • Pay As You Earn Settlement Agreements (PSAs)
    • Setting up a PSA
    • Items that can be covered
    • Calculating tax and Class 1B NICs liability
    • Renewing or cancelling PSA
  • Voluntary payrolling of Benefits In Kind (BIK)
    • The statutory framework for payrolling explained
    • Implications for employees and employers
    • Impact on tax codes and procedures
    • Benefits that can be included and calculate their cash values
    • Effect on end-of-year reporting

Prior learning required

So that you can get full benefit from the subjects in this course, we recommend that you have attended some of the following;

Or

Continuing your learning

P11Ds, expenses and benefits

Designed for those delegates in payroll or finance who are also charged with administering the expenses and benefits provided to employees. This course negotiates the complex tax and NIC rules for a range of benefits in kind, travel & subsistence, other expenses and the completion of forms P11D and P11Db. Also included are the principles of grossing up, PSAs, TAS’s and Extra-Statutory Concessions.

 

Creating a payroll procedures manual

Organisations undertaking payrolling of benefits would need to incorporate new processes into their procedural documentation.

This course covers the theory and practicalities that need to be considered when designing a procedures document that all payroll departments need to ensure all statutory and contractual obligations are managed efficiently and professionally.

 

Salary sacrifice and OpRA

Payrolled benefits are often offered through either a salary sacrifice scheme, or flexible benefits package. This course explains the legal and payroll related implications of salary sacrifice schemes and other optional remuneration arrangements. Using examples, it examines what makes a successful salary sacrifice arrangement, covers the payroll processing and reporting implications, and highlights the potential impact on state benefit entitlements.