Tied accommodation, benefit in kind?
Tied accommodation, benefit in kind?
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singlecoil

Original Poster:

35,836 posts

277 months

Tuesday 26th August 2008
quotequote all
My wife has been offered a job which includes accommodation, which she would be required to occupy. I'm wondering what the tax position would be were she to take up the offer (the employers have made no mention of the tax situation and my wife doesn't want to mention it to them at this stage)

TIA

Eric Mc

125,855 posts

296 months

Tuesday 26th August 2008
quotequote all
If there is a compulsory requirement of the job to reside at or near the place of employment then no Benefit in Kind should accrue.
Examples would be teachers who live at a boarding school, a shop manager required to live over the shop, a pub manager required to live over the pub, train station manager required to live at the train station (as they all used to in the "old" days".

If the accomodation is provided as a "perk", in other words, the employee is not obliged by the conditions of the employment to live there, then the provision of accomodation will lead to a BIK charge.

She needs to confirm with the new employer into which category this offer of accomodation falls.

singlecoil

Original Poster:

35,836 posts

277 months

Tuesday 26th August 2008
quotequote all
That's very good news, thanks, Eric, as there is indeed a compulsory requirement for her to live there, as it is a security issue (the house is next to the property she would be responsible for).

Eric Mc

125,855 posts

296 months

Tuesday 26th August 2008
quotequote all
That sounds fine to me.

I'd still seek clarification from the employer that they are fully aware of the tax rules.