Broadly speaking, "board and lodging" means the provision of the
employee's meals, and somewhere to sleep. If the employee is
provided with a self-contained living space with most of the
facilities necessary for independent habitation, what is provided
then is "living accommodation" within Section 97 ITEPA 2003 (see
EIM11300 onwards). Section 97 does not
apply to board and lodging.
The value of board and lodging provided for an employee is
not earnings within Section 62 ITEPA 2003. The employee cannot
usually convert the benefit into money (see
EIM00530 and Daly v CIR (18TC641)).
However, for employees other than lower paid employees the cost to
the employer of providing the benefit, less any amount made good by
the employee (see
EIM21102), is treated as earnings by
Section 203.
The position is different if the employee is entitled to a
fixed wage, or salary, from which sums are deducted by the employer
in respect of board and lodging. In that case, the gross wage, or
salary, is the amount taxable as earnings within Section 62. The
deductions made by the employer are not taken into account for tax
purposes (see Cordy v Gordon (9TC304) and Machon v McLoughlin
(11TC83)).
See example
EIM01025.
As regards:
