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Paul Glover - Workplace Law Network
Online advisor - 5 posts
I can't see that the C2W scheme would be of benefit to an employee who has just had a baby and is on AML. I doubt that they would use the C2W scheme in the weeks after conceiving, especially if they are on AML.
In order for any salary sacrifice scheme to be allowable, in the terms of what HMR&C permit, the employees contract needs to be amended in advance of the sacrifice commencing. HMR&C provide useful information on this topic, and the circumstances that you describe in their manuals (EIM 42750) here: http://www.hmce.eu/manuals/eimanual/eim42750.htm.
This seems to suggets that as long as the earnings in the year are reduced by the amount of the benefits received in that year then a sacrifice is permissable.
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Paul Glover - Workplace Law Network
Online advisor - 5 posts
There is a certain amount of case law on this subject, but the test is where the clothing is:
"of a special character dictated by the occupation as a matter of physical necessity."
Each scenario needs to be looked at on it's merits, simply placing a logo on a uniform will not exclude the items of clothing from an Inland Revenue taxation perspective.
Detailed guidance can be obtained from your local Inland Revenue office and also here: http://www.hmrc.gov.uk/manuals/eimanual/EIM32455.htm
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Paul Glover - Workplace Law Network
Online advisor - 5 posts
Unless you are deemed an exempt employer (generally those with fewer than five employees or those employers that already offer a company pension scheme which meets certain requirements), employers have a legal requirement to offer access to a stakeholde pension scheme within their workplace. Providing access to a stakeholder scheme does not mean that you have to set up and run a pension scheme ? you, as an employer, merely have to provide the access to a scheme. If none of your employees wish to take advantage of the scheme, you still have to have a scheme in place in which to offer them if they decide otherwise, or if new employees are recruited in the future.
The Pensions Service provide a useful guide to all aspects of administering a stakeholder scheme:
http://www.thepensionservice.gov.uk/resourcecentre/pme/home.asp
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Paul Glover - Workplace Law Network
Online advisor - 5 posts
The option to purchase a bicycle through a company is not strictly a tax benefit. It only becomes a tax benefit if the company provides a bicycle to it's employee; provide being the operative word. The employer still owns the bicycle which, at the employers discretion, it can offer to any employee. The employee doesn't own the bike.
With regards to public transport, a scheme does exist which relates to an employer subsidising public transport, a scheme known as a 'Green Travel Plan', and which must be agreed between the employer and the Inland Revenue in advance. Full details are available on in the Inland Revenue booklet 'IR176 Green Travel'.
Strictly speaking, the employer has to reach an agreement with a local bus company and pay the subsidy directly to them, not the employee.
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Paul Glover - Workplace Law Network
Online advisor - 5 posts
Indeed it is, but only under certain circumstances. Generally if you use a room in your house exclusively for business, once the property is sold a capital gain can arise as the private residence relief is lost on the room in question. You need to make sure that the room is used for both business and pleasure. For the sake of £2 a week the potential liability arising hardly makes the contribution worth while.
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