Updated 480: Expenses and benefits tax guide

13 September 2017

The 480 has at last been updated to included guidance on optional remuneration arrangements, which were introduced in April 2017.

480: Expenses and benefits - a tax guide

Optional Remuneration Arrangements (OpRAs) are where benefits are provided through arrangements in which the employee gives up the right to an amount of earnings in return for a benefit which include flexible benefit packages with a cash option, cash allowances and salary sacrifice.

New rules have been introduced from 6 April 2017 which mean the income tax and employer National Insurance Contributions (NICs) advantages (and employee NICs advantages where a charge exists), are largely withdrawn. This means that any arrangements entered into since 6 April 2017, or arrangements which have been varied or renewed, are now under the new Benefit in Kind (BiK) rules of Finance Act 2017.

The new rules do not however, affect arrangements in respect of pensions, childcare vouchers, workplace nurseries, directly contracted childcare, Cycle to Work, or cars with emissions of 75g CO2/km or less.

Technical guidance (including a full list of BiKs not affected) can be found in the Employment Income Manual.