Can you deduct costs of a car rental from wages

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I'm currently working on a job and I'm not sure what my boss has advised a client is correct and I'm getting more and more concerned. The boss has advised a director of a company and his wife who is just an employee and another employee that they don't have to mess with p11d's. They rent the vehicles through the company. He has told them to add on the cost of each vehicle to each gross wage so effectively they are paying tax and national insurance on the amount still then take it off as a deduction and set off against what the company has paid to the car hire. I've told them to at least show it as a deduction on the payslip as what they get paid through the bank doesn't match their payslip and my boss has told them they don't even need to do that ?? Is this dodgy or is it perfectly acceptable #notsureaboutwhoimworkingfor.

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By Ruddles
09th Aug 2018 11:27

Assuming that the contract is between company and car hire company the above treatment is wrong.

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By E M Curtis
09th Aug 2018 12:46

The contract is between the company and the car hire company, thankfully they don't claim the vat on the invoices, the employees do put mileage through. Unfortunately I just have to as I'm told because I can't very well go to the client and say my boss is wrong and doesn't know what hes talking about, I've queried it several times and asked what about when employees are applying for mortgages or loans etc because they are showing a higher wage than they are actually getting and tax credits or universal credits ,

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