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Living accommodation: An expensive ‘perk’?

By Jennifer Adams, June 2021

Jennifer Adams considers the tax charge of an employer providing living accommodation. 

Some jobs come with somewhere to live, either as a ‘perk’ or because the employer wants the employee to live in a particular property. If this situation applies, a benefit-in-kind tax charge is levied on the employee, and employers are charged National Insurance contributions (NICs) (unless specific exemptions apply).  

The charge is on any employee, director, or member of an employee’s or director’s family or household allocated the accommodation, even if the accommodation is not used. Living accommodation includes all kinds of residential facilities, but not overnight or hotel accommodation or board and lodging. 

Coronavirus: What’s the position?  

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