Residential property owned by client's company and used by subcontractors and employees

Residential property owned by client's company...

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Client's operations are split bewteen Manchester and Glasgow with Manchester being the head office.  A lot of the work is carried out in Glasgow and the company has invested in a property for the use of employees and subcontractors whilst working in Scotland.  In the case of the employees this will not be a temporary work place as the situation will remain the same for at least 5 years.  What is the tax poisiton of the company and the respective employees and subcontractors?

Presumably, a benefit in kind will exist with regards to the employees but as this is only occasional I am unsure how this would be quantified.

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By michaelblake
21st Jan 2014 17:28

See EIM 11306 et seq

 

there is chapter and verse on this in the EIM. Although I am not a specialist I think that broadly the approach is to decide whether the cost of providing the accomodation is taxed as (a) earnings - see EIM11306 or (b) a benefit in kind. If the latter then if the cost to the employer of oprividing the accomodation is less than £75,000 the amount of the benefit is the old gross rateable value. If it is more than £75,000 it is calculated according to a formula - see EIM11428.

If the use is intermittent or shared the total cost to all employees cannot exceed the annual cost for one employee - see EIM 11410.

 

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