simmo
Senior Jockey
I'd be interested if anyone has any knowledge of what appears to be a tax loophole. I don't fully understand the process required to get to the end point, but the gist of the situation is as follows:
Employee signs 12 blank expenses forms every month and sends them off to payroll.
Employee's wage is then split between taxable pay and expenses, obviously this only entails tax being paid on (roughly half) of the employees wages, thus resulting in a far greater bottom line for the employee and greatly reduced employers NI payments for the organisations in question.
Anyone have any knowledge of this practice?
Employee signs 12 blank expenses forms every month and sends them off to payroll.
Employee's wage is then split between taxable pay and expenses, obviously this only entails tax being paid on (roughly half) of the employees wages, thus resulting in a far greater bottom line for the employee and greatly reduced employers NI payments for the organisations in question.
Anyone have any knowledge of this practice?
