Vehicles in the Emergency Services Sector and Taxation

Vehicles in the Emergency Services Sector and Taxation

PSTAX is pleased to announce that it will be hosting an online seminar on Tuesday 25 May 2021 regarding the taxation of vehicles within emergency services.

This event will be a ‘must attend’ for HR, Payroll and Finance representatives from Police, Fire and Ambulance Service employers. We also welcome representation from Chief/Principal Officers and Fleet Managers. Reserve your place by emailing bookings@pstax.co.uk.

Timed to enable P11D reporting obligations to be met, we will cover several worked examples, showing how the benefit in kind arising under the ‘use of assets’ legislation should be calculated for P11D purposes.

Although many clients and contacts in the sector have been dealing with the P11D reporting for many years, the 2020/21 year has brought a number of new issues to the table, including:

  • With the transitional rules having ended, the reportable benefit can no longer be reduced by the proportion of use made for business purposes. This will mean that colleagues will pay more tax. Have you prepared them for that?
  • How will you handle the ‘unavailable days’ that your vehicle users may be reporting to you? Is there a policy covering unavailable days? What evidence is going to be acceptable for you, so that a reduced benefit can be reported?
  • How will you deal with fuel, in cases where vehicle users have been permitted to claim mileage for commuting and/or private use when on call?
  • Do you offer cash allowances as an option alongside a provided car? If so, have you taken account of the rules on Optional Remuneration Arrangements (‘OpRA’) in previous tax years and will you do so for 2020/21 (and future years)?

In the run in to the end of 2020/21, PSTAX has been inundated with requests from emergency services employers regarding the subject of OpRA. It is clear from the follow up discussions that the sector still hasn’t fully appreciated how OpRA impacts and, in particular, how it can render the emergency vehicle exemption totally redundant. We will highlight the issues around OpRA and talk through some solutions that we have reached in recent client cases (preserving anonymity, of course).

Finally, we will cover the emergency vehicle exemption and consider why it is still so underused within the sector, particularly by Chief/Principal Officers. We will explain why, following the end of the transitional rules, this exemption is key to operational effectiveness as well as sensible tax planning.

The on-line Seminar is to be held on Tuesday 25 May 2021 and will start promptly at 10.00am. We aim to finish the seminar at 1.00pm.

 

The cost of a seminar place is £180 plus VAT per delegate. Organisations booking three or more places at the seminar will receive a 10% discount.

 

You can book by sending an email to bookings@pstax.co.uk.