Where an employee is provided with living accommodation there may be a charge to tax and a liability for NICs on the value of that benefit. This benefit applies to all employees including those in excluded employments. Look at EIM20007 if you want to know what we mean by excluded employments.
What we mean by provided
Living accommodation is provided to an employee where it is made available to be used by the employee, whether or not it is actually used. If you want more detailed guidance on this look at EIM11405 and EIM11406.
Provided to the employee's family
The charge also applies where the living accommodation is provided to a member of the employee's family or household. This includes the employee's spouse, children and their spouses, parents, servants, dependants and guests.
Provided by a third party
The charge applies where the living accommodation is provided by the employer but can also apply where it is provided by someone else, as long as it is provided because of the employment. EIM11408 provides further guidance on this.
Exceptions to the charge
There is no charge on provided living accommodation where an exemption applies.
The value of the benefit
Follow this link for guidance on the value of the benefit. The benefit is reduced where there is business use of the accommodation. Look at EIM11501 if you want guidance on business use.
| Home | Previous | Next | Top | Menu |
