If you are working for someone and they are providing accommodation, meals, utilities etc for you then how should that be treated for tax purposes and how is it represented on a payslip? How can you calculate minimum wage/tax/NI etc? I’m assuming this must be reasonably common in certain sectors (agri maybe / oil platform?)

Does not show on payslip I am afraid unless there is a value on them.

Put a value on the meals, utilities etc … Then based on those values plus their salary you should come up with new tax code, NI etc …

Inland revenue always want a piece of the cake btw.

I had a job like that once with a major conservation charity. None of that was mentioned on the payslip…

oil platform

Working in a remote location isn’t the same thing. That would simply be an expense and I wouldn’t expect there to be any adjustment made to salary and there won’t be a taxable element in the UK as it’s not actually a benefit.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323572/hs202.pdf

Living accommodation does not include hotel rooms or board and lodgings, where you are dependent on someone else for cooking, cleaning or laundry, etc.

In ukraine food on and oil platform is chargable 😮 – got caught out with that once in the black sea.

In uk sector – non taxable.

If i submit reciepted expenses for my food its non taxable.

As soon as i claim unreciepted “per diem” for meals its taxed as bik and i can claim the tax back with reciepts proving i spent it on food. You ever tried getting a tax suitable reciept from a west african bush bar 🙂

I don’t think I’ve explained my question very well. Maybe an example….

Let’s say you’re working a 40hr week at £7ph. That’s £280pw.

Then say that “board and lodging” has been costed at £100pw.

Does that mean your payslip still says £280 (gross) and that the £100 is paid out of that or is it represented some other way?

Edit: thanks ninfan. That might help.

They’re benefits and should be taxed as such, unless they are part of a relocation package. Generally you will add the value of accommodation or the current market value if employer owned to your salary for purposes of tax. Not sure on the utilities side of it but food allowances should also be taxed.

My old army wage slips had wage earned then food and accommodation charges removed afterwards if yhat helps at all

scotroutes – Member
Does that mean your payslip still says £280 (gross) and that the £100 is paid out of that or is it represented some other way?

Your payslip will only show £280 gross but your tax code (different tax code) will increase according to the value of the “benefits” you get. The tax code (higher for benefit) will have taxed you for the benefits you received.

I once received free parking at my place of work and the Inland Revenue decided to tax me. In my payslip the company had to adjust my tax code if to include the benefit I received.

It’s not a BIK/benefit if you are paying for it. so how can you be taxed on it?

scotroutes – Member

chewkw » Your payslip will only show £280 gross but your tax code (different tax code) will increase according to the value of the “benefits” you get.

It’s not a BIK/benefit if you are paying for it. so how can you be taxed on it? [/quote]

If you received them regardless of whether they are BIK/benefit, you will be taxed. That’s what I was told. Took me 6 months to argue with the company and IR. In the end I received a higher tax code … 😯

I argued that the car park comes with the job but IR refused to acknowledge that. IR simply advised the company to put a value on it so they could tax me.

I think in this case the “Exemption” applies

21.2
Subject to paragraph 21.3 below, no tax charges in respect of the provision
of living accommodation will arise where:
(a) it is necessary for the proper performance of the employee’s duties that he
or she should reside in the accommodation, or
(b) the accommodation is provided for the better performance of the
employee’s duties and the employment is 1 of the kinds for which it is
customary for employers to provide accommodation for the employee, or

Seems to me it would easier if pay was shown gross and then deductions taken into account (as firestarter explained) but I don’t think that’s how it’s currently working out and the “net hourly rate” is therefore well below minimum wage.

scotroutes – Member
I think in this case the “Exemption” applies

Yeap, I was in that category nevertheless the IR still wanted a piece of the cake and the company decided to pay the extra apart from the parking.

scotroutes – Member
… is therefore well below minimum wage.

Does not matter whatever even if you earn peanuts etc but once you have reached the taxable level you WILL be taxed.

I earn peanuts so even with the free parking etc I was still taxed at the appropriate level (tax category).

I don’t think that’s how it’s currently working out and the “net hourly rate” is therefore well below minimum wage.

theres rules on that:

https://www.gov.uk/national-minimum-wage-accommodation

I thought originally you were asking about how free accommodation was taxed?
If you are paying for the accommodation provided it’s different – there’s an amount the government sets that the employer can use against your wages then if it’s any more than that then the difference comes off your wage.

So in your example the £280 a week would come down by £65 to £215, leaving you an hourly rate of £215/40. If that’s below minimum wage then it’s naughty. (I think it’s £35 a week they can allow for accommodation)

Probably accountant time though, or a have a good pour over HMRC online stuff – probably better I’m not sure I’m correct as never really had to deal with that scenario.

Aye – ninfans link clarifies it. Weekly allowance for “free” accommodation is £35.56. That suggests minimum wage net of this should be around £187 pw. Of course, that’s just accommodation.

nickdavies – Member I’m not sure I’m correct as never really had to deal with that scenario.

My problem too!