Furniture in accommodation provided by employer

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Introduction

The provision of furniture by an employer to an employee is usually linked to the provision of living accommodation to the employee.

Whether the provision of furniture in employer provided accommodation is treated as a taxable benefit in full, or is capped, depends on whether the reason for the provision makes it an exempt benefit under specific legislation.

Annual value

If the furniture provided to the employee remains the property of the employer, the value of the benefit for tax purposes is based on the annual value of the furniture as an asset ― see the Assets ― made available to an employee guidance note.

Broadly speaking, the annual value is 20% of the market value of the furniture when it is first made available to the employee.

Cap on expenses connected with living accommodation ― application to provision of furniture where accommodation is exempt

If the living accommodation is exempt, then the amount is determined differently. The exemptions applying to the provision of living accommodation are discussed in detail in the Living accommodation

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more

Trusts and Inheritance Tax

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more

Autumn Budget 2024

Employment Tax

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

14 Jul 2020 11:13 | Produced by Tolley in association with Jim Yuill at The Yuill Consultancy Read more

Brexit

��Ӱ��