What payment details should be included in a contract of employment?
Do employers have to account for VAT in relation to childcare vouchers provided to employees under salary-sacrifice arrangements?
Should any benefits available to an employee be listed in the contract of employment?
Is it ever permissible for an employer to withhold bonus payments?
How should an employer go about setting up an employee share scheme?
When may an employer withdraw the use of a company car?
Are employee benefits taxable or non-taxable?
Is the company Christmas party a taxable benefit?
If an employer provides an employee's accommodation is it permissible to require the employee to leave the accommodation at the termination of employment?
What are an employer's duties regarding employee expenses?
Can an employer require employees to pay for their uniforms?
If an employee abroad on a work-related trip is unable to return to the UK due to travel disruption, is the employer responsible for paying for his or her accommodation and food?
If an employee abroad on a work-related trip is affected by travel disruption, is the employer responsible for the cost of alternative travel arrangements for the employee to return home?
Are long-service awards incompatible with the Equality Act 2010?
Is it still permissible to award greater holiday entitlement to employees who have, for example, 10 years' service?
Where it is a company's policy to give a small gift to employees who have completed periods of service of multiples of 10 years could this be discriminatory under the Equality Act 2010?
Do employers have to account for VAT in relation to vouchers and other goods and services provided to employees under salary-sacrifice arrangements?
When did the changes in relation to the VAT treatment of taxable benefits under salary-sacrifice arrangements come into force?
No, childcare vouchers are exempt from VAT.
However, employers normally incur administrative fees from their voucher provider in respect of the provision (approximately 6% to 7% of the face value of the voucher). HM Revenue and Customs (HMRC) has, in the past, allowed employers to recover VAT on those fees as a general business overhead. However, following the judgment in AstraZeneca UK Ltd v HMRC Case C-40/09 ECJ, where the European Court of Justice (ECJ) held that the provision of vouchers amounted to a supply of services effected for consideration, HMRC now considers that, because the fees are directly attributable to the exempt supply of vouchers, the normal partial exemption rules must be applied. A business is partially exempt if VAT is incurred on purchases that relate to exempt supplies. Generally, exempt input tax is not reclaimable.
Although the ECJ judgment dates back to 29 July 2010, relevant employers need apply this revised VAT treatment only from 1 January 2012.
How does the decision in the AstraZeneca case affect the income tax treatment of benefits to employees under salary-sacrifice arrangements?
Is it permissible for a salary sacrifice arrangement to reduce an employee's pay to below the level of the national minimum wage?
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