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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I am a vet, I currently live in accommodation provided by my

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I am a vet, I currently live in accommodation provided by my employer, however am about to buy a flat. My contract states that I must live within a set distance of the hospital to fulfil out of hours on call commitments. My employer has said that they can pay my mortgage directly to the bank and this will be tax free due to the nature of my work. Looking on direct.gov it does state that this on call commitment would allow me to benefit from a tax-free accommodation allowance. Is this correct and how do I go about making sure this is done correctly as my wages are PAYE and I don't complete a tax return. Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloSome living accommodation provided directly by your employer because of your employment is exempt from tax.The rules for exemption are that:• the living accommodation is necessary for the proper performance of the duties of your job, or• you are in the kind of employment where it is customary for living accommodation to be provided and the living accommodation allows you to perform your duties better, or• you face a special threat to your security because of your job, and you live in the living accommodation as a part of special security arrangements in force to protect you.Veterinary surgeons who live close to the practice in order to respond regularly to emergency calls is an occupation which satisfy the rules for exemption.Your employer would follow the reporting https://www.gov.uk/expenses-and-benefits-accommodation/overview
Customer: replied 1 year ago.
Yes that is the information from the direct.gov page I mentioned. If the employer pays the mortgage directly is this for them to report?
Expert:  TaxRobin replied 1 year ago.
The employer would report in their returns but you would not be taxed on the accommodation.
Customer: replied 1 year ago.
Great thank you for your advice. My final query if it is ok is whether there is a limit to the amount they would cover? Is it just the mortgage repayment value or an amount of their choosing?
Expert:  TaxRobin replied 1 year ago.
The employer can pay less but the mortgage amount would be used.
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