An employer may own or rent accommodation and provide it to an
employee. If the employee is entitled to a fixed wage or salary
from which sums are deducted by the employer in respect of the
accommodation then the fixed wage or salary is earnings under
Section 62 ITEPA 2003. No deduction is allowed from earnings for
the deductions made by the employer. See Cordy v Gordon (9TC304)
and Machon v McLoughlin (11TC83) (see also
EIM01020).
Where the accommodation is board and lodging consider if
there is an employment related benefit under Section 201 ITEPA 2003
(see
EIM01020 and
EIM21101).
Where the accommodation is living accommodation consider if
there is also a benefit under Section 102 ITEPA 2003 (see
EIM11311).
