PTC-Company house/flat

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Urszula
Urszula Registered Posts: 14 New contributor 🐸
in General discussion
Hi,

I hope you can help me.

If a company provides an employee with the company house, it will cause a tax implication for the employee. Is there any particular time how long the employee can live in that kind of accomodation without paying the tax on it?

I could not find anything in a text book about a lenght of the time. However, I have come across a task in my revision pack for PTC saying that if the employee lives in the company house for one month, it can be treated as a temporary accomodation and there is no need to pay a tax on it.
I would like to define the temporary accomodation. How long can you live in there without causing a tax implication?

Thank you for your respond in advance.
Ursula

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  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
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    i was under the impression that they paid the tax on any accomodation provided over 75k, therefore a 100k house less 75k is 25k at the goverment rate of 4.75% etc.
    this is what i am learning for personal tax
  • Urszula
    Urszula Registered Posts: 14 New contributor 🐸
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    That is correct. However the flat was provided for only 1 month and therefore I am confused. I thought a tax would need to be calculated on the living accomodation even though it was 1 month. An answer in the revision pack to that task is completely different and says that on the temporary accomodation tax does not need to be caluclated.

    How to define a temporary accomodation? Is it only 1 month, or maybe 2 months?

    I was trying to find some information on HMRC webiste, but it was a lot to go through and could not find relevant info.

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