Unlawful deduction - or not?

[Meg888]

My partner gets a commercial vehicle from work; he has to commute 120 round trip / there and back, each day. This was pointed out when the job was offered, hence they offered a vehicle for which they said he would suffer no charges for. 6 mths later they've now decided to deduct "Private mileage" at a cost of nearly �400.00 per month. They have also said they are going to claw back the monies they believe due since he started the job. He doesn't get a salary to afford this sort of deduction. He has checked with the tax office, they said they do not tax his employer for commercial vehicles. He is being charged at a rate of 14p per mile and he has a standard tax code. He tried to stop the deduction (which they suddenly sprung out of the blue the day before payday) by sending an email to HR & management disputing it and not authorising it. They still took, and now he has filed a grieveance. He has done his research and they should not have taken it, however, in reality, what's the odds on getting the money refunded and the whole thing quashed?

[factor-fiction]

It's common to cahrge for private use and they are entitled to introduce a charge for using their vehicle, but I doubt whether they can do it retrospectively. Are they saying they should have charged him all along but overlooked it, or do they agree that they have changed their poilcy retrospectively?

[Meg888]

They are saying they are collecting it for tax purposes to pay to the Revenue. But they dont get charged from the rev; at most they may pay a nominal fee of circa �600 pa. which they can pass on to their employees and if this happens the employee then gets it collected through their tax code. He has std tax code and is paying the same rate as someone with a company car (if i'm not mistaken). We have been advised that travel to & from work in a commercial vehicle is not classified as private mileage and nor is it a benefit in kind. They claim its private mileage which they state they are entitled to collect going as far back as May when he started with the company. He would never have accepted a job with such travel involved for the amount of money he now brings home, nor would he have sold his own van when he received it. He does not use the van for any other than work travel purposes. TIA

[buildersmate]

Yes, Meg, I believe that you are right that it was an illegal deduction, and it canot be retrospectively applied either.
What has happened is that your partner's employer agreed T&Cs of employment with your partner for one thing and now wants to change it. They can do this legally, but not without giving notice. Unless his contract says anything that defines it as longer, then I'm afraid the notice period is only one week.
Unfortunately until your partner has not been there for 12 months, the person is not covered by the unfair dismissal legislation (OK so there are some exceptions - pregnancy for example!). So he runs the risk that if he fights it, they could decide that they no longer want his services (again at one weeks' notice, or maybe longer if in the contract).
But as Zacmaster has pointed out, the employer should not be having to reimburse HMRC for the benefit provided by the van anyway - suggest he refers them to the sheet Z found - and try and get them around without losing the job. HTH