Accommodation benefit

Accommodation benefit

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Company rents a house for a director, who has moved into the area....

Initially the appointment was temporary. After a period of 12 months the assignment became permanent.

Am I correct in thinking that no benefit in kind arises for the first 12 months (as he had no idea that the assignment would last more than two years).

Thereafter, how is the benefit calculated. Does the rule where the benefit is calculated based on the excess of the cost over £75,000 only apply if the company bought the property?

If the rental contact is between the director and the landlord, presumably the payment of rent should be processed thought the payroll rather than on form P11d?

How are the household expenses deadlt with?

Any help would be appreciated.
Rob

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By NeilW
27th Jun 2006 13:38

I love these
Living accommodation is a right larf.

There is a benefit in kind from the moment the property was made available to the individual, and it will need to be reported on the P11D.

Whether the individual can claim an offset depends how the property was used and whether the temporary workplace rules apply.

The benefit if the property is rented is the rent paid - assuming that rent is the open market rent.

Household expenses are valued at cost as services supplied to the emmployee.

The above only applies if the company is contracting for the property. If the individual is contracting for the property then any reimbursement is merely salary and taxed as such.

NeilW

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By User deleted
27th Jun 2006 14:45

Thanks....
...pretty much as I thought.

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