Provision of living accommodation as taxable benefit
A client has been offered a new post as a permanent employee of a company based in London. My client lives in the South West. The firm are offering to pay my client's travel expenses to London and provide him with living accommodation during the week, which they will pay for.
The proposed contract states that my client's place of work will be the firm's London office. I assume that any travel expenses incurred between his home address and his place of work will be a taxable benefit if they are reimbursed, as these are ordinary commuting expenses. They will need to be reported on the P11D.
Furthermore, if living accommodation is also provided to my client while he is in London, I assume that this will also be a taxable benefit, calculated using the HMRC guidelines at http://www.hmrc.gov.uk/paye/exb/a-z/l/accommodation-value.htm . The living accommodation benefit will also be reported on the P11D.
My client is keen to avoid the tax and NI costs of the benefit in kind, and has asked if there is any way around this. I cannot see one myself, as the firm do not have an office near my client's home (so his place of work would have to be London). Even if his contract stated that his place of work was his home address, it would seem rather dubious if he was travelling to London regularly, and staying there during the week, and presumably HMRC could argue that his place of work was indeed London, rather than his home address.
Any views would be appreciated.
- I have missing sales invoices 333 5
- Dissolving company to avoid CCJ 179 1
- is my company accounts right? 635 16
- Invoice Help 344 10
- VAT on sales net of CIS suffered 214 8
- Class 2 National Insurance contributions 335 5
- What are options for non CA firm 2,386 51
- Summer evenings and ponderings of capital allowances 346 5
- Have I dropped a major clanger? 935 19
- Errors in prior year accounts 1,041 26
- Directors Subsistence 179 1
- (CIMA) - Qualified to Management Level (2006) 235 4
- Filing FPS early with moneysoft 416 16
- Purchase of freehold by flat management company 263 3
- Final year's accounts 333 3
- Do I need to report this to SOCA 2,911 27
- Exactly which business miles can I claim from my employer? 1,480 20
- Free Shares ? 329 6
- Dividend dates 333 6
- Sxx rather than sxx 299 3
- Property exchange - 8-year legal delay following fall-out 552
- SAGE Payroll Data for Import to MS Dynamics AX 318
- Cancelled 314
- Cancelled 264
- Have you staged yet for auto enrolment? 223
- Married woman dies owning marital home 216
- Probiz 205
- What's the market like for temps? 200
- CIS Deductions 162
- Phishing emails purporting to be from CIPFA? 158