The following Employment Tax guidance note Produced by Tolley in association with Robert Woodward provides comprehensive and up to date tax information covering:
Under a Flex arrangement each employee is essentially given a degree of control over how and on what their personal remuneration ‘budget’ provided by their employer is being spent.
Employees in a non-Flex environment will talk about their remuneration on a salary + pension + benefits (if applicable) basis. In the Flex arena, each element of the remuneration package is valued, including non-cash elements such as holidays, to form part of the overall budget or ‘total’ remuneration figure (sometimes referred to as ‘total reward’). In this manner, employees begin to understand the true value of their remuneration package, which can be a valuable recruitment and retention tool in itself.
Having agreed a budget, the employer can decide on the degree of flexibility and the choices on which an employee may spend their budget. A number of employers currently offer a ‘full’ Flex scheme for staff, ie where employees can select from a sometimes very extensive range of benefits and choose the package which most suits their personal lifestyles. However, Flex is not an ‘all or nothing’ option. In fact, a degree of flexibility can be offered to staff, without any additional cost, or even with reduced costs. Flex can also be introduced on a gradual or selective basis.
Whether or not a formal flex scheme is implemented, there are, in principle, two basic approaches to the provision of non-cash benefits:
benefits may be provided, but in return, the employee accepts a reduction in gross pay so that the employer is able to fund those benefits without increasing its costs (and the benefits may of course be structured so as to minimise tax and / or NIC, see the Optional remuneration arrangements guidance note), or
benefits that may be provided in addition to gross pay, but perhaps funded at least in part by an employee contribution made out of net pay (ie after deduction of tax and NIC)
In general, the approach at (A) may
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.