Tax and NI on employer funded accommodation

ispookie666

Hi
As part of my job for the next year I will be working on a different site, since the daily commute is going to be very long - I would be eligible for accommodation reimbursed by my employer.
But during the whole year I would still be having my family home as base - as cannot relocate my wife and child.
Will I have to pay tax and NI on the reimbursement? As I would be paying up front using my Post tax and NI pay.

Nicola_Ed

Hi - the answer is may be! Check out the link below

http://www.payandbenefitsmagazine.co.uk/article/tax-update-expenses-and-temporary-workplaces

jimmo

In its simplest form if you are currently working at a set location (permanent place of work), will work at the away site for less than 24 months and will then return to work at the original location then provided all the work is performed under a single, continuous, contract of employment any subsistence payments paid by your employer will be tax and NI free.
That sounds like the case here but your employer really should know all that because if anything they pay you is not covered it is your employer’s duty to deduct tax and NI and they will be the ones in trouble with HMRC, not you, if they fail to do so. So it should be well worthwhile asking your employer to clarify.

ispookie666

Thank you - that's a lot clearer.

ispookie666

Still awaiting my first pay slip to know how things have been worked out.

My employer is reimbursing 24p/mile as travel expenses from Home to Work place accommodation ie., once weekly to and fro travel - which comes to 88 miles. Would I be able to claim the difference between the
Approved Mileage rate and the employer mileage rate?