The Chartered Institute of Payroll Professionals (CIPP)

Happy Friday everyone — which means it’s time for another edition of !

Take a look below at one of the latest questions answered by our Advisory team 👇

A: Awarding a new office chair to an employee will be treated as a taxable benefit.

The value of the benefit will be the higher of how much the chair is worth second-hand when you transfer it or how much it cost when you bought it.

The taxable value of the benefit must be reported on form P11D under section A or payrolled (if registered for voluntary payrolling benefits).

The employer pays Class 1A National Insurance on the value of the benefit.
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Another Friday, another edition of !

Each week, our Advisory team supports payroll professionals with a wide range of questions and real-world scenarios. Here’s one of the latest FAQs the team has been helping with this week 👇

A: You need to provide written notification to your employees by 1 June every year in respect of benefits that have been payrolled in the tax year prior. The notification can be in the form of the employees' payslip, an email, or a letter.

You should include details of:
- the benefits that have been payrolled, what they are and the value
- the amount payrolled for optional remuneration
- any benefits that have not been payrolled

The notification should also advise your employees that they will not be taxed twice because their benefits are payrolled.

Full details can be found here: https://ow.ly/n1r650Z54JQ

Friday is here, which means it’s time for another edition of !

Each week, our Advisory team supports pay professionals with a wide range of queries — and this week is no different. Check out one of the latest FAQs below 👇

A: A deduction for an accidental overpayment of wages will not reduce pay for National Minimum Wage (NMW) or National Living Wage purposes (NLW), this position is supported in legislation, under Regulation 12(2)(c) of The National Minimum Wage Regulations 2015 (https://www.legislation.gov.uk/uksi/2015/621/regulation/12).

This will apply in both instances whereby a deduction is made from an employees' pay or a payment has been made to the employer from the employee.

It is of course important to ensure that you have a signed agreement from the employee when implementing a repayment plan.

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With CIPP membership, you’ll have access to our Advisory team via phone and email, helping you tackle payroll queries quickly and confidently.

Join here now: https://www.cipp.org.uk/membership/join-online.html or get in touch with the team on [email protected].