104001 Pierce UDS Advert _A5_Layout 1 09/04/2021 10:38 Page 1
OPRA SAVINGS CAN STILL BE MADE by Philip Johnson
Payroll manager, Pierce
Prior to April 2017, both employee and employer were able to make a saving in Class 1 National Insurance Contributions on benefits that were offered through salary sacrifice.
The employee was also the recipient of a PAYE tax saving, and employers therefore sacrificed anything they could.
Due to this, HMRC looked to tighten the salary sacrifice rules and in April 2017 brought in Optional Remuneration Arrangement (OpRA).
OpRA will apply in one of two scenarios: when an employee enters a salary sacrifice arrangement for a taxable benefit in kind (BIK) provided by their employer, or if an employee is offered either cash or an alternative benefit in kind.
The following are exempt from OpRA rules, and still attract the full PAYE tax and Class 1 NIC savings:
• pension contributions • employer provided pensions advice • workplace nurseries
• childcare vouchers and directly contracted employer provided childcare that started on or before 4 October 2018
• bicycles and cycling safety equipment (including cycle to work)
• company cars with emissions of 75g/km or less, including electric vehicle leasing options currently available
Any salary sacrifice arrangements that are entered into between an employer and an employee will require a change in the terms of the employees’ contract of employment.
An employment law specialist should be consulted when looking to alter an employee’s contract.
If an employee enters a salary sacrifice arrangement, the employer must ensure that any deductions do not take the employee below the National Minimum Wage (NMW) rates for the period that the deduction has been taken.
The Payroll Team at Pierce can help with any questions you may have. Please contact us.
A NEW YEAR, A NEW START
by Victoria Mitchell Partner, Farleys
A new year often brings a revived sense of determination, hope and sense of starting afresh, both personally and professionally.
As we leave a turbulent 2022 and enter 2023, many employers will be contemplating their new year to-do list and starting to think about where they can achieve growth and improve efficiencies.
A thorough review of staffing structures and HR and employment law procedures can help to support this whilst safeguarding your rights as an employer and minimising risk.
Consider:
Restructuring – analyse your existing staffing structure. Promote and reward key personnel; succession plan; merge roles/ departments and exit employees that hold your company back and won’t benefit its future.
Employee exits – evaluate your current workforce and take action - whether this be termination of employment for poor performance, redundancy, misconduct or
ill-health; or expedited by way of protected conversations and settlement agreements.
Recruitment - new skills and fresh faces can bring great benefits but don’t forget to protect your position through issuing contracts of employment and a focus on probationary and notice periods; or even consider fixed- term arrangements.
Contracts – review employment contracts and directors service agreements. Update or issue new ones that you are confident will protect your business.
Managing absenteeism - whether short-term absenteeism or long- term sickness, this is always a headache for employers as it impacts on efficiency and affects morale if mismanaged. Businesses should have appropriately drafted sickness absence policies in place in a staff handbook and conduct specialist training for management.
Training – a simple and cost- effective tool to upskill, motivate and improve employee output.
LANCASHIREBUSINESSVIEW.CO.UK We provide solutions Providing core accountancy services with quality and
swiftness whilst focusing on the future of your business and finding solutions to your problems.
Some of our solutions:
•Business Strategy •Pre year end planning •Staff incentives
•Re-structuring your business
•Selling your business •Buying a business
•Management / family buy outs
•Acquisitions •Raising finance •Forecasting •Trust and estate planning •Tax investigations •Research & Development •Business Valuations
Give us a call to discuss how we can help your business
01254 688100 Email:
l.kennery@
pierce.co.uk www.pierce.co.uk
Straightforward employment law advice for your business.
www.farleys.com
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EMPLOYMENT LAW
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