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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Living accommodation: other liabilities in connection with living accommodation: meeting employee's liability

Section 62 ITEPA 2003

Whether or not an employer provides an employee with living accommodation there may be employment income from other benefits and facilities connected with the living accommodation. This page tells you where to find guidance in respect of employment income that is chargeable whatever the level of income. For information on earnings that are only chargeable on those who are not in lower paid employment (for 2015/16 and earlier) see EIM11522.

Where the employer meets an employee’s pecuniary liability these are earnings within Section 62 ITEPA 2003 and chargeable whatever the level of the employee’s income (see EIM00580). The employer will meet the employee’s pecuniary liability or pay a cash emolument where the employer either:

  • pays direct a bill that is the employee’s responsibility, or
  • reimburses the employee for a bill the employee is responsible for and has paid.

The costs connected with living accommodation that this might apply to include:

  • rent
  • council tax or water charges. But in the case of those living in job-related accommodation see EIM11332.
  • mortgage interest
  • repairs and insurance. But alterations, additions and structural repairs are likely to be the liability of the employer rather than the employee (see EIM21620).
  • heat and light
  • telephone expenses
  • gardening and other domestic services.