EIM11522 - Living accommodation: other liabilities in connection with living accommodation: employer's liability providing benefit to employee
Part 3 Chapter 10 ITEPA 2003
Whether or not an employer provides an employee with living
accommodation there may be employment income from other benefits
and facilities connected with the living accommodation. This page
tells you where to find guidance in respect of earnings that are
only chargeable on those who are not in lower paid employment (see
EIM20006 onwards). For information in
respect of employment income that is chargeable whatever the level
of income see
EIM11521.
An employment related benefit can arise on those who are not
in lower paid employment on the following accommodation
services:
- where the employer is the person liable for paying the bills in respect of expenses relating to the employee's living accommodation (see EIM21001 onwards). In this case there is no meeting of an employee's pecuniary liability so there can only be a benefit under Part 3 Chapter 10 ITEPA 2003. An example would be where the employer is the customer of the electricity company for the living accommodation rather than the employee.
- the provision of furniture and furnishings (see EIM21710)
- land not included in living accommodation (see EIM21630 onwards).
Note that alterations, additions and structural repairs to the
living accommodation do not give rise to a benefit under Part 3
Chapter 10 (see
EIM21620). They may affect the measure
of the provided living accommodation charge under Part 3 Chapter 5
ITEPA 2003.
Where a director or an employee who is not in lower paid
employment is provided with living accommodation that is exempt
from a provided living accommodation charge (see
EIM11331) there is a restriction on the
cash equivalent of the benefit on provided:
- heating, lighting and cleaning and
- repairs to, or decoration of, the premises and
- the provision of furniture or other items normal for domestic occupation.
For details of this restriction see EIM21720 onwards. The restriction applies whether the item is provided as a benefit or as a meeting of the employee's pecuniary liability.
