Employment Income Manual

EIM01143 - Employment income: flexible benefit plans:

Many flexible benefit plans involve the employee being allocated a 바카라 사이트渂enefit allowance바카라 사이트� (described in some schemes as a 바카라 사이트渇lex fund바카라 사이트� or 바카라 사이트渇lex account바카라 사이트�). This 바카라 사이트渁llowance바카라 사이트� represents the amount of money that the employer is prepared to spend to provide the employee with their chosen benefits. You will usually be able to accept that the 바카라 사이트渂enefit allowance바카라 사이트� itself is not an amount on which the employer must operate PAYE/NIC, except to the extent that the employee chooses to draw it in cash. In most cases, the amount of cash that the employee is entitled to receive is not fixed until the employee has made his or her choice ofbenefits.

For example, an employee may be allocated a 바카라 사이트渂enefit allowance바카라 사이트� of 拢2,000 per annum, of which they 바카라 사이트渟pend바카라 사이트� 拢1,700 on various benefits in kind and take 拢300 per annum in cash. The 拢300 is subject to PAYE and Class 1 NIC, but the 拢1,700 is not.The benefits in kind that the employee gets are taxed in the normal way (and subject to Class 1A NIC from 6 April 2000).

Sometimes, the employer바카라 사이트檚 scheme allows the employee to 바카라 사이트渟pend바카라 사이트� more than their benefit allowance. For example, the employee in the previous paragraph might want benefits to the value of 拢2 250, the extra 拢250 (over and above the 拢2 000 benefit allowance) being met by an adjustment to their basic salary. In that case, it is again necessary to decide whether or not there has been an effective reduction in the employee바카라 사이트檚 contractual cash pay (see EIM01141).