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D. Living accommodation

Living accomodation expenses1:40
Living accomodation expenses
1 videos, with a playing time of 1 minute


 

Living accomodation expenses1:43

"If a company provides living accomodation, how's it recorded?"

When the company provides living accomodation to an employee, the expense is considered a: "Benefit-in-kind"

HMRC has two systems for submitting expenses:

  • The old "P11D" system, that's being phased out.
  • And the new "payrolling" system, that's replacing it.

Unfortunately, HMRC hasn't included "D. Living accommodation" expenses in their new "payrolling" system.

Which means that if you've got "D. Living accommodation" expenses to submit, HMRC requires ALL employers to submit it using the old "P11D" system (submitted per year, per employee).

To learn more:

  • About how to submit a P11D, go to GOV.UK.

By "ALL employers" it means, regardless of whether you've moved to the new "payrolling" system, or if you're still on the old "P11D" system. All employers who've got any "D. Living accommodation" expenses must submit them through the old "P11D" system. It's the only way HMRC is willing to receive them.

Because it's the only way HMRC's willing to receive them, if you've got "D. Living accommodation" expenses, you'll need to talk to your accountant on how to submit them through the old "P11D" system.

To also learn more:

  • About how to calculate the "cash equivalent" of the living accomodation, go to GOV.UK.

And that's it! That's everything you need to know about providing living accomodation to an employee!

Updated: Sun, Nov 5, 2023.

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