need advise for deducting rent from employees wage

mod81

I will shortly be looking to rent out my current home and one of my employees has expressed an interested in renting it from me.
The employee suggested deducting the rent from his wages so to save the hassle of me paying his wages then him paying the rent back to me.
I have spent the last hour or so searching on the internet for some advise on whether i can do this but the only information i can seem to find is for deducting rent out for accommodation i provide for my employees which is not what i will be doing.
Any advise will be appreciated

Sambucus_Nigra

Don't do it. Keep them separate. Have you rented out a house before?

MissSarah1972

You can only do that if the property belongs to the company that pay the salary?

marybelle01

And risk it becoming a tied property? Keep the two things separate.

Hmm71

marybelle01 wrote: »

And risk it becoming a tied property? Keep the two things separate.

Why would the OP be risking it becoming a tied property?

mod81

No i haven't rented out my house before, was hoping that renting out to my employee would simplify the process since it was a guaranteed payment of rent while the employee worked for me but i guess that its actually more complex than renting out to a stranger

marybelle01

Hmm71 wrote: »

Why would the OP be risking it becoming a tied property?

Because they are linking it to the employment relationship by taking the rent direct from wages, even with the employees agreement. Not all tied property is provided free of charge, so the test is not whether rent is paid, but whether the property and the employment relationship are connected. And what people intend to happen and what actually happens five or six years down the road are not always the same thing. Better to employ someone and pay them a wage; then be the landlord of someone and collect rent. Even if that someone is the same person. Then there is no risk of confusion.

sniggings

Get them to setup a standing order for the rent, date it for each pay day, why make in complicated.

getmore4less

30+ years ago my summer employer at a seaside resort tried this, got hit with an Illegal deduction of wages and had to pay a lot of it back, they got raided for under age employement and the books got a good going over.

The smart empolyee could set ths up and you get stuffed when they leave and put in the claim.

DCFC79

Its hardly hassle to set up a SO to pay you for the rent, takes less than 5 minutes to set a S up.

LittleVoice

MissSarah1972 wrote: »

You can only do that if the property belongs to the company that pay the salary?

What company?

OP referred to his employee not his company's employee.