accommodation for staff

[mknight]

I am considering the option of providing some of my staff with accommodation during the time they work for me (since they will be working away from their main home).

I have a relative's house available and am happy to pay market rent, approx £150/week. What are the implications if my business pays for this expense? I realise there may also be implications for the staff - Does the benefit have to be apportioned between them? This will be difficult in practise since the number of them staying at the house at any one time will vary, as too may the length of their stay.

Many thanks in advance for any advice.

[awj1]

Generally, the provision of accommodation to employees is a benefit in kind according to the time that they had use of the accommodation, and therefore additional taxable income for them.

The business would be required to complete a form P11D for them at the end of the tax year, and to pay over to the Inland Revenue the amount of employers National Insurance at 12.8%.

If there is a large through put of staff through the accommodation for a short period of time, etc, which was a large administration burden, and the business was feeling generous and was willing to pay the employees tax and national insurance on this, you could apply to the Inland Revenue to put the accommodation cost onto a PAYE settlement agreement. This is up to the discretion of your local office however.

I hope this helps

Amanda Wade-Jones
A Wade Tax Consultancy
amanda@tax-consultancy.co.uk