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.
- 100% Xero practice 2,118 35
- Vat treatment of charity business income 109 6
- where has the honest passion to help gone..??? 863 18
- Company Accounts 125 2
- Any Scottish members out there? 9,196 343
- Getting VAT right for a sole trader pilot 188 6
- Donations (to a school!) 432 11
- Vat on Royalites 83 1
- Umbrella Company 146 2
- Outsourcing iXBRL Tagging 432 24
- Payroll YTD info on Operaii 82 1
- Treatment of goodwill in Consolidation 161 5
- Mortgage deposit Gift 433 18
- Profitable company wanting to buy an office 173 3
- property rental income split 258 3
- Shadow director or alternative? 468 4
- Does my client qualify for CGT Loss? 141 1
- EIS/SEIS capital gains exemption 101 2
- About to buy a block of fees. Any advice? 1,275 5
- Use of home for storage 337 6
- Raiders of the Lost Tax File 1,189
- Chartered Accountant in County Down N.Ireland 405
- IPP (International Pension Plan) income 316
- National Insurance 310
- valuation of intangible asset FRS10 and FRS20 261
- Cass 5 FCA Client Money Software recomendation 237
- Unnecessary S9A Enquiries 237
- Non Resident 222
- Franchise income and costs 205
- A question for the payroll-only bureau's out there 162