This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Employee accommodation - heat & light

Silvery Waves
Posts:4
Joined:Wed May 27, 2020 12:25 pm
Employee accommodation - heat & light

Postby Silvery Waves » Wed May 27, 2020 12:27 pm

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
Posts:379
Joined:Wed Aug 02, 2017 9:09 pm

Re: Employee accommodation - heat & light

Postby darthblingbling » Wed May 27, 2020 6:15 pm

Which exemption?

bd6759
Posts:3462
Joined:Sat Feb 01, 2014 3:26 pm

Re: Employee accommodation - heat & light

Postby bd6759 » Wed May 27, 2020 7:26 pm

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
Posts:4
Joined:Wed May 27, 2020 12:25 pm

Re: Employee accommodation - heat & light

Postby Silvery Waves » Thu May 28, 2020 10:54 am

Thanks for the reply!

darthblingbling
Posts:379
Joined:Wed Aug 02, 2017 9:09 pm

Re: Employee accommodation - heat & light

Postby darthblingbling » Thu May 28, 2020 1:12 pm

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


Return to “PAYE and Payroll Taxes, National Insurance, NICs”