The service for employers to check whether the amount on which they propose to operate Pay As You Earn (PAYE) for assets other than cash is reasonable, has been removed.
Where assets other than cash are provided to an employee and are treated as earnings, in general, PAYE and National Insurance contributions (NICs) will have to be operated.
The amount on which PAYE should be operated and NICs assessed is the best estimate that can reasonably be made of the amount of income on which the employee is likely to be chargeable to tax in respect of the provision of the asset.
For most assets, including shares or other securities provided directly to an employee, the value to be ascertained is ‘money’s worth’, with reference to:
the cost of the asset to the employer the value of the asset when it was awarded where the employee has already sold the asset, the amount received for it – if known where the employee has contributed towards the cost of the asset – the amount of that contribution should be deducted.Section 5.13.2 of CWG2: Further guide to PAYE and National Insurance contributions has been updated accordingly.
