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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Accommodation: earnings within Section 62 ITEPA 2003

Section 62 ITEPA 2003Section 6 ITEPA 2003 charges employment income from general earnings and specific employment income. Section 7 ITEPA 2003 explains that general earnings include:

  • earnings within Section 62 ITEPA 2003 and
  • any amount treated as earnings under the benefit code (see EIM00510).There are four possible ways accommodation counts as earnings under Section 62.

  • The employee owns or rents the accommodation. The employer pays rent allowance or extra salary (see EIM11307).
  • The employer provides accommodation. The employee has a continuing right to choose a higher wage instead (see EIM11308).
  • The employer provides accommodation. The employer pays a gross wage from which rent is deducted (see EIM11309).
  • The employer provides accommodation. The employee is allowed to sub-let the accommodation (see EIM11310).In any case where earnings arise under both Section 62 and Part 3 Chapter 5 ITEPA 2003, then Section 109 ITEPA 2003 stops the accommodation being charged twice (see

EIM11311).