EIM11309 - Accommodation: employer deducts rent from gross wage

Part 3 Chapters 1, 5 and 10 ITEPA 2003

An employer may own or rent accommodation and provide it to an employee. If the employee is entitled to a fixed wage or salary from which sums are deducted by the employer in respect of the accommodation then the fixed wage or salary is earnings under Section 62 ITEPA 2003. No deduction is allowed from earnings for the deductions made by the employer. See Cordy v Gordon (9TC304) and Machon v McLoughlin (11TC83) (see also EIM01020).

Where the accommodation is board and lodging consider if there is an employment related benefit under Section 201 ITEPA 2003 (see EIM01020 and EIM21101).

Where the accommodation is living accommodation consider if there is also a benefit under Section 102 ITEPA 2003 (see EIM11311).