Paying employees through payroll ( not taxed) for expense necessary for employment.

callybags

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Apologies in advance if the thread title is not clear.

Some of our employees are required to have a particular licence to work in the company. Up until now, the company have paid the licence issuer directly, and the licence is issued to the employee. There are no BIK implications for the employees.

Now, the licence issuer is insisting that the employee must pay for the licence themselves. Employees will be obliged to show proof of having obtained the licence.

Payroll are saying they will just add the amount as a non taxable payment to the employees payslip.

My contention is that the employee must submit an expense claim for the payment to cover the employer.

Any opinions?
 
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