SE07700 - Emoluments of employees and office holders: tax-free remuneration

SI 1993 No 744 Regulation 22

There is a system which employers can adopt if they wish to make "free of tax" payments to their employees. What the employer has to do is deduct tax from the gross amount of the remuneration. The gross is the amount actually paid to the employee plus the income tax that would be payable on that gross.

Districts are not primarily involved because the question is one of interpreting an agreement between employer and employee. Full instructions are at EP1230 onwards and ECH19000 onwards.