PTC-Company house/flat

Urszula

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

noodles

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

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.