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Where Taxpayers and Advisers Meet

Paid Sabbatical - accommodation abroad P11D

kurekoe
Posts:5
Joined:Fri Apr 08, 2016 1:29 pm
Paid Sabbatical - accommodation abroad P11D

Postby kurekoe » Tue Jun 20, 2017 2:43 pm

Paid Sabbatical - accommodation abroad P11D

We have a researcher employee on a paid sabbatical leave. To complicate things even further they are on an exchange scholar visa J1 in US progressing with their research. We are also renting a flat over there for this researcher to stay in while on the sabbatical leave.

Am I right in thinking that this rent is a clear P11D item?
What would change if the rent was reimbursed to us in the future by the research funder?

Thank you

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Paid Sabbatical - accommodation abroad P11D

Postby AmanSood » Wed Jun 21, 2017 8:42 am

That's right the accommodation is reportable on the Form P11D and this would be the case even if the rent was reimbursed by the research funder. However, the accommodation may not be taxable if the sabbatical to the US is for a period of less than 2years.

Presumably the researcher is paying taxes in the US as well? If so, a tax return should be filed in the UK/US to get a tax credit in the relevant country and ensure there is no double taxation.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

kurekoe
Posts:5
Joined:Fri Apr 08, 2016 1:29 pm

Re: Paid Sabbatical - accommodation abroad P11D

Postby kurekoe » Wed Jun 21, 2017 9:04 am

Thank you very much.

Would it be possible to guide me to the appropriate legislation/hmrc manual where I could find the less than 2 years rule?

To my knowledge the researcher does not pay any taxes in the US, it is 8 months engagement and visa type is J1 and as I have been told there shouldn't be any US tax liability as they are actually not working.


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