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bigduckontax
bigduckontax, Accountant
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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: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years 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.

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