Share this content
0
987

P11d Footballers accomodation

Short term accomodation

Didn't find your answer?

Search AccountingWEB

I provide some voluntary help at a small professional football club.

They are signing a player from another EC country and have agreed to rent a flat for him whilst he is under contact.  The contract runs for 18 months.

Is this a 'benefit in kind' and is there a point where there is no benefit based on the length of the tenancy i.e. short term.

As part of a professional footballers job they sometimes have to move around from club to club (often without their family) to make a living. 

If other players were to share the flat how might this impact on the situation?

Any thoughts would be appreciated.

Replies

Please login or register to join the discussion.

30th Jan 2019 15:19

Sorry, he doesn't get tax free accommodation just because he's foreign.

To qualify for the "customarily provided" exemption, every player would have to be given rent free accommodation. By "every", I mean every player in the country, not just at your club.

If more than one player shares accommodation, the costs are shared too. Usually equally, but not necessarily. One player might have a bigger bedroom than another, for example.

Being from an EC country is irrelevant. It would apply to any player, UK, EU or rest of the world.

Thanks (2)
avatar
to lionofludesch
31st Jan 2019 15:25

Would not late night training be ' out of hours '

optimistic yes maybe

Thanks (0)
to C Graham
31st Jan 2019 15:29

C Graham wrote:

Would not late night training be ' out of hours '

optimistic yes maybe

How is it "out of hours" ?

Not everyone works 9 to 5. Lots of people work outside those times. If soccer players arrange to train in the evenings, it's not out of hours. Evenings are when they're required to work. Evenings are their hours.

Thanks (0)
avatar
to lionofludesch
31st Jan 2019 16:05

Same for agricultural workers but they are exempt.
And evenings are not necessarily the hours - depends on what is in their contract. They may need to do extra training sessions building up to match.

Thanks (0)
to C Graham
31st Jan 2019 16:17

C Graham wrote:

Same for agricultural workers but they are exempt.

It's not, though, is it ?

Yows don't lamb to order. Not to mention that the text acknowledges that it's customary for agricultural workers to be provided with accommodation.

Why do you think a soccer player needs tax free accommodation to do a few bench presses in the gym ?

Thanks (1)
avatar
to lionofludesch
31st Jan 2019 16:50

ha - well you are right in that sentiment. But there is a lambing season so it could be said that is working hours.
And Dolly the sheep may in fact lamb to order.
Not all agricultural workers are accommodated on farms with animals. Maybe the picking of fruit must be done at the optimum moment.

Anyway I think your statement is more indicative as to whether or not it is a deserving cause at all to save footballers tax for a job that involves kicking a ball around. On that I'm inclined to agree.

Thanks (1)
to C Graham
31st Jan 2019 17:20

C Graham wrote:

Anyway I think your statement is more indicative as to whether or not it is a deserving cause at all to save footballers tax for a job that involves kicking a ball around.

No - it's more to do with dealing with such a case four years ago. Directors confidently put forward exactly the same flawed points at the meeting with HMRC. Plus "how can this foreign guy be expected to travel from his home in Ruritania every day ?"* Outcome £16000 back tax settlement.

* The answer is, he doesn't have to travel from his home in Ruritania every day. He can flit - like thousands of northern folk working in Lahndan.

Thanks (1)
avatar
31st Jan 2019 14:59

Living accommodation is usually a taxable benefit for the employee unless it falls under one of the
following statutory exemptions;
Better performance of the employee’s duties and where it is customary for an employer to provide accommodation, like with agricultural workers – to qualify the employee should have speedy access to the place of work and be on call outside of normal working hours.

Would that apply?

Thanks (0)
to C Graham
31st Jan 2019 14:57

C Graham wrote:

Living Accommodation is when an employer provides an employee with the use of a property with means of independent living such as cooking facilities etc. Living
accommodation is usually a taxable benefit for the employee unless it falls under one of the
following statutory exemptions;
Better performance of the employee’s duties and where it is customary for an employer to provide accommodation, like with agricultural workers – to qualify the employee should have speedy access to the place of work and be on call outside of normal working hours.

Would that apply?

No.

But I like your optimism.

Thanks (0)
By DJKL
to lionofludesch
31st Jan 2019 15:02

Last minute team sheet changes?

Thanks (0)
to DJKL
31st Jan 2019 15:14

Hastily rearranged cup tie ?

Thanks (0)
By DJKL
to lionofludesch
31st Jan 2019 16:30

For some clubs having an on call manager could be useful.

Thanks (1)
to DJKL
31st Jan 2019 16:42

Hibs ?

Thanks (0)
By DJKL
to lionofludesch
31st Jan 2019 19:12

Yes, they could use an "in case of emergency break glass" substitute, if you look back that makes 7 in 11 years.

Shame about Lennie though the three season ticket holders in the household do not seem that fussed and it is only myself, the non supporter, who thinks they will be hard pressed to get a better replacement.

Thanks (0)
avatar
By brash
31st Jan 2019 18:01

Thanks for the comments
I was hoping that if a job took someone to work away from their home for a limited time frame the accommodation might be tax free
For example if I was sent 200 miles away on an audit job for say two weeks and stayed in a hotel this would not be a benefit
At what point does the period become a benefit
What if the player is on loan from another club

Thanks (0)
to brash
31st Jan 2019 19:04

You can give it a go for nowt but this is what I'd say if I was a HMRC officer.

It might be a temporary workplace for him but it isn't temporary for the club. There's a world of difference between a firm sending an employee to work at a temporary workplace and an employee working at one workplace throughout his employment.

Here's the biggest snag - if you treat it as a BIK, the employee pays the tax. If you don't treat it as a BIK and HMRC corrects your view, the club pays.

Thanks (1)
avatar
By raycad
to brash
31st Jan 2019 19:45

The rules you refer to (temporary workplace, up to 24 months duration) could indeed, in theory anyway, apply to incoming foreign workers. This is made clear in Revenue Booklet 490. But I'm not sure you will be able to utilise it in your client's case.

Although it is intended that he will be here for less than 24 months, UNLESS he is being sent to the UK by a foreign employer on loan/secondment (which addresses your second point), this would not be a continuous employment. And, in that case, HMRC would regard an 18 month contract as a fixed period engagement and the temporary workplace rules don't apply to fixed period engagements.

In short, if it IS a loan move, you will probably be okay. If not, its a BIK, I'm afraid.

Thanks (1)
avatar
By spilly
31st Jan 2019 20:46

We have a specialist restaurant client that employs staff from the EU to ensure authenticity of the menu & ambience. All these staff are given staff accommodation and this is done as a BIK and listed on P11ds. The problem arises when the staff work for less than a year, and have already returned to their home country before the tax on this can be collected through their tax codes. So if your new signing departs after a few months, HMRC may not catch up with him to get back the BIK tax due.

Thanks (1)
Share this content