Employee accommodation - heat & light

[Silvery Waves]

We rent a property for £1,000 per month, which one of our employees lives in - no benefit arises as the property is covered by one of the exemptions.

However, the £1,000 is inclusive of heat & light. Should we calculate a notional heat & light element of the monthly rent payment and report a taxable benefit, or does the full £1,000 qualify under the exemption conditions?

[darthblingbling]

Which exemption?

[bd6759]

The nature of the exemption is not relevant.

The exemptions covers the accommodation benefit plus the cost of council tax and water rates. It does not cover utilities or any other costs you incur. A notional sum should be calculated.

[Silvery Waves]

Thanks for the reply!

[darthblingbling]

Was thinking if this was just temporary accommodation under TWR rules then the utilities and such would actually be allowed. Not strictly an exemption as it's in the deduction section of ITEPA, but is treated as such if the employer is meeting the cost