How do i add a tax/NI free deduction to a salary payment (for staff travel loans)

Question asked by Accounts Manager 11 years ago

I provide an annual interest free loan to staff for their annual travel card. Repayments are deducted from salary but are Tax and NI exempt (free). Does openpayroll support this - if so how do I post?

Payroll Payroll
Accounting Accounting
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4 Replies

Hello,

I have looked at the query, you can do this either via a deduction on the Open Payroll module or as a salary sacrifice. You will need to refer to the HMRC website for which method does not tax the loan you are giving to your employee.

Let me know if you need further help

Vanish

Best answer
11 years ago

Hello,

You will need to open Open Payroll, and when you process payroll for the employee in question, you will need to scroll to the very bottom and there is a deductions section you can fill out.

Regards,

Vanish

11 years ago

Thank you Vanish. What do you mean by "via a deduction on the open payroll module"?

Salary Sacrifice is not applicable. It is an interest-free loan re-payable monthly (and taken out of pay).

11 years ago

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