How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 2989
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

GD MORNING i WILL START WORKING IN UK W/I FEB. iF MY COMPANY

Customer Question

GD MORNING
i WILL START WORKING IN UK W/I FEB. iF MY COMPANY WILL ARRANGE CORPORATE LEASE OF A FLAT , RENTAL WILL "INCREASE" MY PERSONAL INCOME TAXES?
THANKING YOU IN ADVANCE
BRGDS/DIMITRIS
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Dimitris, I'm Keith and happy to help you with your question.
In very general terms the situation is as follows. This is from the Gov UK website [edited]:
'Accommodation
This includes any accommodation you provide, even if the employee doesn’t actually use it (see technical guidance ).
Who gets the benefit, what to do, what to deduct or pay.
Employees earning at a rate of less than £8,500 a year Report on form P9D Nothing deducted, no tax due.
Employees earning at a rate of £8,500 or more a year Report on form P11D Pay Class 1A National Insurance on the value of the benefit
Directors Report on form P11D Pay Class 1A National Insurance (NI) on the value of the benefit.'
So there you are, if you earn under 8.5K then there is no tax charge. If you earn over 8.5K you must pay Class 1A NI on your flat. If you are a director of the company arranging the accommodation then the Class 1A rule applies again.
It gets more complicated if the company arranging the accommodation also meets council tax, water and sewerage charges.
If the employee [you] meets these and the company reimburses them then this amount is subject to income tax and NI. Otherwise it is just Class 1 NI.
, heating lighting etc it is mainly adding on NI.
In fact, this becomes relatively complex and your company may well have to use a local professional to calculate the additional NI, and occasionally income tax, to be charged.
I do hope I have been able to shed some light on your situation.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions