14th October 2008, 01:08 PM
After discussion with the Inland Revenue, and until such times as the IFA launch a challenge â this is the following advice from BAJR.
There is only one exception to the accommodation being a taxable benefit.
If you are working for a company and you are sent to another location outwith the normal area of the company, where travelling is NOT a viable option, then (and only then) it can be seen as NON taxable.
IF you are taken on by a company that is outwith its normal area where travelling is NOT seen as a viable option, BUT this is a particular job you are taken on for - this IS seen as taxable benefit, as this location has become your permanent place of work.
It is quite possible to have both type of staff on the same site, those who are recieveing âfreeâ accommodation and those who receive it as part of a package of taxable benefits â in this case, it should be remembered that the final pay must have parity⦠therefore, enough remuneration must be given to staff to cover the cost of accommodation and the additional tax/NI --- Although this may initially be perceived as the temporary staff being paid âmoreâ than the permanent, this will not be the case, as the additional benefit of accommodation will not appear in their wageslip, as it will with the temporary staff.
This advice will be implemented by BAJR until such times as a final decision is made. Better safe, than investigated by the Inland Revenue.
"I don't have an archaeological imagination.."
Borekickers
There is only one exception to the accommodation being a taxable benefit.
If you are working for a company and you are sent to another location outwith the normal area of the company, where travelling is NOT a viable option, then (and only then) it can be seen as NON taxable.
IF you are taken on by a company that is outwith its normal area where travelling is NOT seen as a viable option, BUT this is a particular job you are taken on for - this IS seen as taxable benefit, as this location has become your permanent place of work.
It is quite possible to have both type of staff on the same site, those who are recieveing âfreeâ accommodation and those who receive it as part of a package of taxable benefits â in this case, it should be remembered that the final pay must have parity⦠therefore, enough remuneration must be given to staff to cover the cost of accommodation and the additional tax/NI --- Although this may initially be perceived as the temporary staff being paid âmoreâ than the permanent, this will not be the case, as the additional benefit of accommodation will not appear in their wageslip, as it will with the temporary staff.
This advice will be implemented by BAJR until such times as a final decision is made. Better safe, than investigated by the Inland Revenue.
"I don't have an archaeological imagination.."
Borekickers
For really I think that the poorest he that is in England hath a life to live, as the greatest he
Thomas Rainborough 1647
Thomas Rainborough 1647