job related living accommodation

[stableboy]

Can anyone tell me whether job related living accommodation provided for stable staff in general is exempt from income tax. I am aware of the specific exemption for stable staff of racehorse trainers but what about in respect of other competition horses (dressage, polo, show-jumping).

[RMC]

Living accommodation provided for an employee is not taxed on them as a benefit in kind if:
a) the living accommodation is provided for the better performance of the duties (this is referred to as the better performance test (see HMRC manual at EIM11349))
b) and the employment is one of the kinds in which it is customary for employers to provide living accommodation (this is referred to as the customary test (see EIM11347)).

a) seems to apply here, re b) maybe best to publish the query in a trade journal.
Alternatively, you could try to ask HMRC for ruling under the non-statutory clearance service, details on gov.uk website.

[stableboy]

Thanks for the reply, I had given up hope. Interesting idea about the trade journal. I will give it some thought.

[bd6759]

The answer is - there is no answer.

Read this, particularly 1.36, 1.51.and 1.52
https://www.gov.uk/government/uploads/s ... report.pdf

Guidance can probably be obtained from the National Federation of Trainers

[stableboy]

Thanks for the reply bd6759. I tried the link you gave but unfortunately, all I am getting is "page not found".

[bd6759]

Works fine for me
Try this

http://tinyurl.com/kblmws4

[stableboy]

Thanks again bd6759. Success this time and a very interesting and comprehensive analysis of the situation by the OTS. Whether anything useful comes of it, of course, remains to be seen.

As I suspected, it's a tricky area for any employer to get involved in and the National Federation of Racehorse Trainers have obviously realised this and obtained an exemption. The fact that this was not extended to the rest of the industry suggests that HMRC continue to regard the provision of accommodation to non NFRT stable staff as a "perk" unless convinced otherwise, which seems unfair. Or do they take a more relaxed view in practise? Does anyone have any actual experience?

I am interested in this matter from an employee's point of view. I have a family member in the industry and I am trying to look out for her interest and to understand if a large tax bill might be coming her way. I suppose if her employer is not exempt and does not have a dispensation then there is a potential liability.

[stableboy]

Since I last posted on this subject I have had a "lightbulb" moment. You know, where something seems so obvious you wonder why you did not think of it sooner. I have assumed that on-site accommodation provided for stable staff will inevitably be employer provided accommodation and a business cost which therefore raises the question of benefit-in-kind. If the business benefits from tax relief then whoever is on the other side of the deal has to pay the tax.

But, what if the accommodation is provided privately by the employer. In other words the accommodation is not owned, or paid for, by the business and the employee lives there at no cost, more or less, as a guest of the employer. The employee might even be living in the employers own private residence in a spare room. Similarly, expenses relating to the accommodation would only be a benefit-in-kind if paid for by the business. Although unusual, it is possible that a wealthy employer might shoulder the costs privately.

Is there some merit in this or is my lightbulb about to explode?

[bd6759]

The test is "by reason of the employment". If the person providing the accommodation is doing so because of your employment, it is caught.