Pay Day by Pay Day Tax Relief 3

Pay Day by Pay Day Tax Relief also know as Pay Day Relief Models have been used by Umbrella Companies and Employment Businesses but I have no doubt other business have used them too.

Basically the employer applies for Dispensations for Expenses and then without a valid employee claim reduces the employees pay to cut PAYE and NI costs.

There is a great example to be found on the Ross Martin website

http://www.rossmartin.co.uk/index.php/employers/employee-expenses/957-dispensations-agencies-and-umbrella-companies

HMRC issued a further statement in August

http://www.hmrc.gov.uk/news/news290812.htm

Its worth reading to makesure your procedures are HMRC Compliant

steve@bicknells.net