Rental

Hi If we rent out property to employees, and make agreement to deduct the rental & bills from their salary, are their normal salary fully taxable before the deductions? The deductions would be after tax & NIC ? Is it right?

Hi,
 

It depends on your agreement. We would need to know if it is a salary sacrifice arrangement or not. You can find information on salary sacrifice here: Salary sacrifice for employers   . Salary sacrifice is a contractual change where the employee gives up the right to salary normally in exchange for a benefit in kind . If it is a salary sacrifice, this is deducted first, and the remaining salary is put through the payroll for tax and national insurance . If there is no salary sacrifice agreement, then the deduction comes from the net pay  . Thank you.