CIPP UK: Managing expenses and benefits

CIPP UK: Managing expenses and benefits

  • Country

    United Kingdom

  • learning hour's

    6

  • Material Year

    2022

Overview

Benefits in kind are increasingly awarded by employers to staff as part of a comprehensive total reward package. Ensuring these items are reported correctly to HMRC can be complex, with a myriad of rules to follow.

If you:

Require a detailed refresher of the above
Want to confirm compliance for expense reimbursement and benefits reporting
Are reviewing employee expenses and benefits policy
Have sign-off responsibility for reporting expenses and benefits to HMRC
Are at team leader level or above (or solo payroll specialist) as this is an advanced topic and assumes prior knowledge of basic PAYE and payroll processes

This course will bolster your knowledge, skills, and confidence in the areas of employee benefits.

At the end of the course, you should be able to:

Appreciate the effect that the UK’s benefits code has on a range of expenses and benefits (what is and is not reportable for tax/NI)
Evaluate various arrangements for delivering expenses and benefits efficiently
Evaluate the organisation’s expenses and benefits policy
- To reduce costs for employers and employees
- To motivate and reward employees effectively
- To reduce the administrative burden
- To be compliant with legislation
Calculate the taxable value of various benefits
Calculate Class 1A NICs accurately

Benefits in kind are increasingly awarded by employers to staff as part of a comprehensive total reward package. Ensuring these items are reported correctly to HMRC can be complex, with a myriad of rules to follow.

Who is this course for?

This course is designed for those in payroll or finance who are responsible for administering expenses and benefits provided to employees. Aiming to help delegates navigate the complex tax and NICs rules for a range of expenses, benefits in kind and the rules around travel and subsistence. Also included with the course content, are the principles of grossing up, settling tax and NIC on benefits provided to employees/third parties via Taxed Award Schemes, or a PAYE Settlement Agreement.

What will you achieve?

The course aims to help delegates navigate the complex tax and NICs rules for a range of expenses, benefits in kind and the rules around travel and subsistence.

Also included with the course are the principles of grossing up, settling tax and NIC on benefits provided to employees/third parties via Taxed Award Schemes, or a PAYE Settlement Agreement.

Appreciate the effect the UK’s benefits code has on a range of expenses and benefits (what is and is not reportable for tax/NICs)
Evaluate various arrangements for delivering expenses and benefits efficiently
Evaluate the organisation’s expenses and benefits policy
- To reduce costs for employers and employees
- To motivate and reward employees effectively
- To reduce the administrative burden
- To be compliant with legislation

    Course Trainers

    • Fiona Smith

      Before joining the CIPP as a full-time trainer in September 2019, Fiona worked in payroll in different organisations for over 9 years including her role as Assistant Group Payroll Manager for Breedon Group Services, the UK’s largest independent construction materials firm. Fiona holds the CIPP Foundation Degree in Payroll Management and the CIPD Diploma in HR Management and uses the knowledge gained in both of these within her training role to ensure that CIPP members have the information, skills and knowledge they need to keep up to date with the ever-changing payroll obligations.

    What will be covered?

    Course Content:

    • Cost implications of expenses and benefits
    • Reimbursing employee expenses, including travel and subsistence
    • Benefits exempt from reporting, including trivial benefits
    • Salary sacrifice and OpRA (in brief)
    • PAYE Settlement Agreements (PSA) and grossing up
    • Advantages of effective and efficient expenses and benefits policy
      Summary

      If you want to understand how to manage expenses and benefits effectively, including the rules around providing expenses and benefits that do not have to be reported, this could be the course for you.

      It will also show you how employers can shoulder the tax and NI burden for employees were providing benefits that are minor, irregular or impractical to apportion.

      The course is broken into two half-day sessions.