Questions from our ForumThursday, October 28th, 2010
Each week we receive a number of payroll questions on our forum, and here are this week’s batch. Can you help with any answers?
I keep reading that the cycle to work scheme can be used in conjunction with existing salary sacrifice schemes. Am I right in saying that even if used exclusively of existing schemes (we currently offer nursery place vouchers to employees) the cycle to work scheme still follows the basic premise and rules of a salary sacrifice in that it is a contractual change to an employees terms and conditions and needs to be documented as such.
Secondly I understand the main three principles of the cycle to work scheme for the tax exemption to apply but am somewhat confused by the third key point. The loaned cycles must be available to all employees generally – this applies to all employees in the company not just those in the scheme.
If we make the scheme available to all employees (NMW and age issues aside) by which I mean if we offer the option to participate in the salary sacrifice scheme – are we complying with this third exemption requirement or do we need to go further than this and for instance acquire a pool of bicycles for those employees who do not want to be part of the salary sacrifice scheme but who may want to use a bike for 2 months of the year only for example.
Other Forum questions:
- Can a Romanian national working in Romania be paid under PAYE?
- Is there a limit on how much can be paid out as a tax refund?
- What are the tax implications of making an ex-gratia payment to the widow of an employee who died recently?
- Can we deduct a new earnings arrestment from payments of SMP?
- I work as a nanny and my contract says I work three days per week. What is my situation if my employer only provides one day’s work?