PG电子

Example 1:

Jane commenced employment with XYZ Ltd on 1 August 2011 having ceased employment with ABC Ltd on 30 June 2011. Her taxable earnings from ABC Ltd since 6 April 2011 were 拢5,200. XYZ Ltd offers a fully compliant childcare voucher scheme. Jane applied to join the scheme immediately. Her remuneration package consists of salary 拢3,200 per month plus taxable benefits of 拢800 per month. XYZ Ltd also has a discretionary annual bonus scheme. Pension contributions of 拢250 per month will be deducted under net pay arrangements.

To comply with Condition D the employer must immediately make an estimate of the employee鈥檚 relevant earnings amount for the tax year 2011/12.

Jane鈥檚 salary for the remainder of the tax year will be 拢25,600 (拢3,200 x 8). Similarly, her taxable benefits will be 拢6,400 so the aggregate amount for the purposes of section 270B(1)(a) is 拢32,000. Discretionary bonuses do not form part of relevant earnings so the possibility of Jane receiving a bonus may be ignored.

Because Jane became employed by XYZ Ltd during the tax year, under section 270B(2), XYZ Ltd has to calculate the relevant multiple of that amount. Commencing with the day that Jane became employed with XYZ Ltd, 1 August 2011, there are 249 days remaining in the tax year 2011/12; so the relevant multiple is 拢46,907 (拢32,000 x 365/249). The taxable earnings from Jane鈥檚 previous employment must be ignored.

The aggregate of excluded amounts is 拢9,475 (pension contributions of 拢2,000 (拢250 x 8) and personal allowance of 拢7,475). Therefore the 鈥渞elevant earnings amount鈥� for 2011/12 is 拢37,432. As that exceeds the basic rate limit for 2011/12 (拢35,000), the exempt amount for the remainder of 2011/12 will be 拢28 per week (or the monthly equivalent of 拢124).

Example 2:

Chris has been employed by XYZ Ltd for several years. He has recently become a father and applies to join the childcare voucher scheme with effect from 1 August 2011. His salary is 拢2,500 per month and has pension contributions of 拢150 per month deducted under net pay arrangements.

To comply with Condition D the employer must immediately make an estimate of the employee鈥檚 relevant earnings amount for the tax year 2011/12. As Chris was employed by XYZ throughout the tax year, section 270B(2) does not apply. For the purpose of making the estimate, XYZ Ltd should take account of relevant earnings and excluded amounts for the whole of the tax year.

The aggregate of relevant earnings is 拢30,000. The aggregate of excluded amounts is 拢9,275. Therefore the 鈥渞elevant earnings amount鈥� for 2011/12 is 拢20,725. As that is less than the basic rate limit, the exempt amount for the remainder of 2011/12 will be 拢55 per week (or the monthly equivalent of 拢243).