Work social fund deducted before tax?

F

francesmc

Guest
Hi All. I wonder if somebody could shed some light on the following situation.

My boyfriend's employers have been deducting a set amount of money from his salary for the 'social fund' (pubs, restaurants etc) since he started in the job.

It recently came to the employee's attention that there was no seperate account for social fund and that there were no records kept of contributions or expenditure. There having been no social events since April 2006 anyway, the employees requested a refund of all contributions. After some discussion it was agreed contributions for 2007 & 2008 would be refunded.

Today the employees were advised the sum they would be getting back. There was a 41% tax deduction on the sum.

Having absolutely no payslips to check back on we are wondering is it possible that the company could have deducted money before tax for a social fund? Isn't that the right of pensions and other things more important than what was basically drinking money!
 
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