P11D Benefits

[Bello]

My parents have lived in accommodation attached to the job for over 28 years and been charged a nominal rent.

Should my Father have been filling a P11D to declare this as a benefit?

For this year for example for the first time my father recieved a P11D for his employer saying that his tax code may change because of the information on the sheet (The accommodation being the benefit at £12,419)

Thanks

[accountant@uktaxshop]

If you have received a P11D this would suggest that your employer believes the accommodation is not exempt to tax anymore, or alternatively they have made a mistake.

Some accommodation with employment is exempt from tax “if the living accommodation is necessary for the proper performance of the duties of your job; or
you are in a kind of employment where it is customary for living accommodation to be provided and the living accommodation enables you to perform your duties better; or you face a special threat to your security because of your job, and you live in the living accommodation as a part of special security arrangements in force to protect you” (IR202)

I would suggest you discuss this with your employer at the first instance to understand why this has been issued in this year, and not previously.

If you need any further help please let me know.

Regards,

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436