7th July 2008, 04:58 PM
Spent most of the day...
talking with tax advisors and technical tax advisors and employer advisors and inspectors etc... seems like there is a good case... if put well, and unified!
It is actually very complicated, and not a straightford one... which is why this can happen! :face-thinks:
I am doing my best to help everyone... both employer and employees .. as both are affected... will keep at it.
Living accommodation: exemption
Where living accommodation is provided there will be no charge to tax and no liability for NICs if:
? T he employer is an individual and the living accommodation is provided in the normal course of domestic or personal relationships or
? the employer is a local authority and the living accommodation is provided to its employees on terms that are no more favourable than those on which similar accommodation is provided by the authority for someone who is not its employee.
There are also four exemptions from the living accommodation charge. These are where:
? the employee occupies the living accommodation as a representative occupier. There is more guidance on this at EIM11336 onwards.
? it is necessary for the proper performance of the employee's duties for him or her to live in that particular property. There is more guidance on this at EIM11341 and EIM11342.
? it is customary in that kind of employment for employees to be provided with living accommodation and the accommodation is provided for the better performance of the duties. There is more guidance on this at EIM11346 onwards.
? personal security is an issue. There is more guidance on this at EIM11361.
Where any of these four exemptions applies there may also be other exemptions and reductions in the benefit charge.
EIM11337 - Living accommodation exemption: meaning of representative occupier
Former representative occupier posts can qualify for exemption from any benefit arising under Part 3 Chapter 5 ITEPA 2003 on provided living accommodation (see EIM11336). A representative occupier is an employee:
who resides in a house provided rent free by the employer and
who as a term of the contract of employment is required to reside in that particular house and is not allowed to reside anywhere else and
whose occupation of the house is for the purpose of the employer, the nature of the employment being such that the employee is reasonably required to reside in it for the better and more effectual performance of the duties.
"No job worth doing was ever done on time or under budget.."
Khufu
talking with tax advisors and technical tax advisors and employer advisors and inspectors etc... seems like there is a good case... if put well, and unified!
It is actually very complicated, and not a straightford one... which is why this can happen! :face-thinks:
I am doing my best to help everyone... both employer and employees .. as both are affected... will keep at it.
Living accommodation: exemption
Where living accommodation is provided there will be no charge to tax and no liability for NICs if:
? T he employer is an individual and the living accommodation is provided in the normal course of domestic or personal relationships or
? the employer is a local authority and the living accommodation is provided to its employees on terms that are no more favourable than those on which similar accommodation is provided by the authority for someone who is not its employee.
There are also four exemptions from the living accommodation charge. These are where:
? the employee occupies the living accommodation as a representative occupier. There is more guidance on this at EIM11336 onwards.
? it is necessary for the proper performance of the employee's duties for him or her to live in that particular property. There is more guidance on this at EIM11341 and EIM11342.
? it is customary in that kind of employment for employees to be provided with living accommodation and the accommodation is provided for the better performance of the duties. There is more guidance on this at EIM11346 onwards.
? personal security is an issue. There is more guidance on this at EIM11361.
Where any of these four exemptions applies there may also be other exemptions and reductions in the benefit charge.
EIM11337 - Living accommodation exemption: meaning of representative occupier
Former representative occupier posts can qualify for exemption from any benefit arising under Part 3 Chapter 5 ITEPA 2003 on provided living accommodation (see EIM11336). A representative occupier is an employee:
who resides in a house provided rent free by the employer and
who as a term of the contract of employment is required to reside in that particular house and is not allowed to reside anywhere else and
whose occupation of the house is for the purpose of the employer, the nature of the employment being such that the employee is reasonably required to reside in it for the better and more effectual performance of the duties.
"No job worth doing was ever done on time or under budget.."
Khufu