Utility bill deducted from salary

Davidp77

Hi

Was hoping someone would be able to help.

A friend of mine currently lives above the shop they work in, this is in a property part owned by one of the owners of the business.

There is currently only one gas & electric supply to the building so she pays a contribution to her employer each month towards these costs.

However, her employer has now asked that they would rather than take the cash from her each month they want to deduct this straight from her salary.

They have advised her that she will a little better off by her saving the tax on this contribution and that it is best for it to work this way.

Is this deduction allowed to be taken from her pay? I wasn't too sure if this deduction would be taken pre or post tax and she would be saving any money. Even if this is allowed, the tax saving will be minimal, or if there is a benefit to the employer that I am unaware of and there is some sort of tax benefit to them which is why they are proposing to charge her this way?

They may just be doing it this way to ensure they get the money each month but any thoughts would be appreciated.

Thanks

Dave

Keep_pedalling

It should be taken from her net pay so she saves nothing as far as IT is concerned.

Davidp77

I did think it would have to be out of her net pay so there wouldn't be any saving to her even though they told her there would be?

Is there any benefit to the employer doing it this way?

Thanks

00ec25

Davidp77 wrote: »

They may just be doing it this way to ensure they get the money each month but any thoughts would be appreciated.

doubtless, wouldn't you?

does not alter that fact it is a non statutory deduction from pay, so is covered by "rules"...

https://www.gov.uk/understanding-your-pay/deductions-from-your-pay