OpRa Rules

These are benefits that are provided to the employee under the rules of Optional Remuneration Arrangement (OpRa).

When an employee has a choice between cash and a benefit, and the employee chooses the benefit, the employee will be taxed on whichever value is greater, that is, the cash offered as an alternative or the normal taxable value of the benefit.

OpRa Rules for Benefits

Benefit	Rules
Car	Where an Amount Foregone is present and the Co2 emissions above 75g, a Modified Cash Equivalent is calculated as shown: Price of Car + Accessories x Appropriate % derived minus any reduction for days unavailable. No consideration is given to any capital contributions or payments made for private use in this case.
Car fuel	If there is a value in the new Amount Foregone and the Co2 emissions are above 75g, this field is compared with the calculated value and the higher value of the two will be used as the taxable benefit for Car Fuel. The higher of the following two values is considered: Fixed amount x appropriate % MINUS reduction for Days unavailable (and) Amount foregone. For example, if the amount foregone for the year is £4800 (400 per month x 12) and the calculated benefit is £4520 (Fuel Benefit charge of 22600 x 12%), then take £4800 as the car fuel benefit amount as this is higher.
Van	Where an Amount Foregone exists, a Modified Cash Equivalent is used to compare with the amount foregone. The modified cash equivalent is calculated as: Full Van Benefit Charge MINUS and amount calculated for unavailability MINUS any amount calculated as Reduction for Sharing. Note: The reduction given for payments made for private use of van is not subtracted at this point. The amount foregone is compared with the above calculated Modified Cash Equivalent. The higher of the two values is used. Any private use contributions made by the employee is deducted.
Van fuel	If there is a value entered as ‘Amount Foregone for Fuel’, this will be compared to the Fuel benefit charge for the year calculated as normal (£610 for tax year 2017-18, minus any amounts for unavailability) and the higher of the two values will be treated as the taxable benefit amount for van fuel benefit. For example: if Amount Foregone for Van Fuel for the year is £600 (£50 per month x 12) and the calculated benefit (with 10 days of unavailability reduction calculated as £16) = £594 (610 – 16), then take £600 as the car fuel benefit amount as this is the higher amount
Interest Free and Low Interest Loans	If you follow OpRA and the employee has foregone an amount and this amount is greater than the interest payable on the loan at the official rate of interest, you must enter the relevant amount as Amount Foregone minus the interest amount. If the amount foregone is less that the interest payable, enter the interest amount. This benefit is not processed through payroll and therefore the information entered is used for P11D report.
Employer Provided Living Accommodation	This benefit is not processed by payroll. For OpRA, enter the amount foregone and the P11D process will use this information to calculate the taxable cash equivalent.