I have a friend who works in a shop. Its the sort of shop. He has worked there a couple of years. The shop has two company vehicles for deliveries/service etc. In the past year or so my friend has had use of this vehicle for travelling to and from work. This has been mutually beneficial as it helps him get to work and it also helps his emplyer as he makes service calls on the way to the shop where he spends most of his working time,and on the way home. Now i know that there is a tax issue with the private use of company vehicles as it is seen as a benefit in kind. There is also the issue of unpicking what is deemed private use and what could be deemed transport whilst at work-i.e on the way to/travelling from service/delivery visits.
The key issue is that his employer did not make him aware of the tax implications,indeed its possible the employer wasnt fully aware of it himself.
He has noe become aware of it. Maybe he has had a tax bill or his accountant has worded him up on it. Either way he has drafted an agreement for my friend to sign which ties up future private use and arranges payment for it. That in itself isnt an issue though i havent seen the "contract" and he hasnt signed it.
What is the issue is that the employer is trying to make retrospective charges for the useage that has happend in the recent past eg about a year. This month,without agreement or consent and without even mentioning it,he has deducted a couple of hundred quid from my friends wages.
Your feedback is appreciated!
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