Utility bills deducted from salary

UK Discussion in 'Individuals' started by DavidP77, Jan 26, 2019.

  1. DavidP77


    Jan 26, 2019
    Likes Received:

    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 water supply to the building so she pays a contribution to her employer each month towards this cost.

    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 or if there is a benefit to the employer that I am unaware of and there is some sort of tax benefit to them?

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


    DavidP77, Jan 26, 2019
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  2. DavidP77

    Steve-LevelUp VIP Member

    Jul 18, 2016
    Likes Received:
    To be fully 'legal' the deduction would need to be done after taxes, rather than before, as the water costs are not a factor of employment and do not actually reduce wages.
    Steve-LevelUp, Jan 27, 2019
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