Accommodation provided by employers: some taxing questions


The government is seeking evidence on the taxation of employer provided living accommodation. An explanatory document has been issued and the deadline for responses is 3 February. It is worth reading for its clear explanation and examples of just how complicated the taxation of employer provided living accommodation has become over the last forty years or so. It can be found at this link: Government consultation on employer provided living accommodation.

One particular question of the 16 caught my attention. It's number 10, and it asks:

"Do you agree that using market rental value would provide a simplification to the tax rules on provided living accommodation? How could such a system work and what would be the impacts on both employers and employees?"

I wonder what the effect of this might be on rural employees who live in houses which might be considerably larger or more expensive than they would otherwise choose, or indeed than they may be able to afford? I have devised a simple survey which will allow some data to be collated if we can gather enough responses. Some of the questions ask how many people of different ages live in the accommodation. This will allow comparison with the maximum size of accommodation that would be acceptable for Local Housing Allowance purposes. Please complete the survey by the end of January and this will allow the responses to be collated in time for the government's deadline.

This link: Accommodation Survey will take you to the survey.

Thank you for your help which could be most valuable in providing evidence for the government's review.

From Charles Cowap's blog