What are Optional Remuneration Arrangements (OpRA)? | Moorepay

Payroll Legislation

What are Optional Remuneration Arrangements (OpRA)?


What are Optional Remuneration Arrangements (OpRA)?


Ongoing requirement


If you offer your employees cash allowances, flexible benefit packages with a cash option, or salary sacrifice in return for a Benefit in Kind (BiK), here’s what you need to know:

  • All BiKs are now valued at the higher of the cash given up or the value under the traditional rules.
  • All previously non-taxable BiKs are now taxable, valued on the cash given up.
  • Cars with emissions of 75g CO2 /km or less, pensions, pension advice, childcare and Cycle to Work are unaffected.

Arrangements entered on or before 5 April 2017 kept their previous tax treatment until the earlier of a renewal or variation of the arrangement. Most pre-6 April 2017 BiKs moved into the new rules on 6 April 2018.

Benefits now subject to OpRA rules

  • Car parking
  • Private medical / dental insurance
  • Technology / mobile phones
  • Cars (over 75g / km) / vans
  • Car fuel
  • Accommodation
  • Use of assets – assets made available by employers for use by employees – e.g. computers, televisions, bicycles
  • Transfer of assets – assets bought, sold or given by employers to employees – e.g. computers, televisions, cars, bicycles
  • Authorised mileage allowance payments
  • Own goods / products
  • Health assessments
  • Pension loan

More detailed guidance has also been issued which forms part of the Employer Income Manual (EIM) part for OpRA guidance:

payroll legislation guide

Payroll Legislation Guide

Do you know the dates of all the complex payroll legislation changes? Are you aware of what you need to do to ensure your business is compliant? Many UK businesses aren’t aware…