VAT/Payroll deduction query | AccountingWEB

VAT/Payroll deduction query

Can anyone point me in the right direction for clarification on a payroll deduction question? 

We are going to supply a service to various individuals.  We will work out their estimated annual billing and send them a statement every 6 months.  They won't pay us directly but have a 1/12th deducted from their pay each month.  Their employer will pay us monthly with those payroll deductions.  If the original estimate is wildly "out" the payroll deduction will be adjusted accordingly.

Assuming the employer has a dispensation in place do you agree that there is no benefit and therefore it is not reportable under P11d?

 am going around in circles on the HMRC site and I have asked them directly but they have said it is salary sacrifice which I don't think it is.  The bill is not going to be sent to the employer.

I did look in to issuing a bill to the employer but it got very complicated as regards the VAT - would they charge vat to the employee etc.


All comments gratefully received!


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Not enough information

neileg |

not enough information

landscaper |
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Well then

neileg |


landscaper |
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Constantly Confused |
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neileg |