0141 332 0392

Paxton House, No 11 Woodside Crescent, Glasgow, G3 7UL

Search Archive


OpRA’s defined

Source: HM Revenue & Customs | | 09/07/2019

The Optional Remuneration Arrangements (OpRA) legislation was introduced with effect from 6 April 2017. The legislation counters the tax and NIC advantages of benefits where an employee gives up the right to an amount of earnings in return for a benefit. This includes flexible benefit packages with a cash option, cash allowances and salary sacrifice.

The taxable value is now the higher of the cash foregone or the taxable value under the normal BiK rules. A benefit is deemed to be provided under an OpRA if it is provided under an arrangement of either type A or type B.

Type A arrangement

Type A arrangements are arrangements under which the employee gives up the right, or the future right, to receive an amount of earnings which would be chargeable to tax in return for the benefit.

Type B arrangement

Type B arrangements can be defined as - other than type A arrangements - under which the employee agrees to be provided with a benefit rather than an amount of earnings.

A benefit does not include arrangements under which the employee reduces their working hours or becomes entitled to additional unpaid leave.

 

Latest News

 

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

McAllisters is a partnership trading from Paxton House, 11 Woodside Crescent, Glasgow providing accountancy and tax services and general business advice and is a member of ICAS (Registration No 0342) and an FCA exempt professional firm (No 301235). Its VAT number is 261 3019 94

McAllisters (Scotland) Ltd is a related business providing tax and business advisory services to McAllisters and its clients. McAllisters (Scotland) Ltd is registered in Scotland (Registration number SC146856). Its VAT number is 624 0564 62.

Copyright © McAllisters 2013 – 2019

 Cookie Policy   Privacy Policy   Terms Of Use   Standard Terms of Business