Payroll Legislation

What is Optional Reumeration Arrangements (OpRA)?


What is Optional Reumeration Arrangements (OpRA)?

Due Date



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), the rules for these types of BiKs changed on 6 April 2017.

  • 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.

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

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