Farm accommodation 'could be affected by latest tax proposals'
Essentially the OTS considers that employer-provided accommodation is in principle a benefit and the simplest route would be to tax the value of the benefit provided but acknowledges that such a broad approach would ignore the necessity of certain staff living in specified, employer-provided accommodation to do their jobs.
The OTS says the current rules on employer-provided accommodation are arbitrary and inconsistent and should be restricted to instances where the employee is required to live in the accommodation to enable them to protect buildings, people or assets; or because they have to work outside normal working hours; or because they need to live in employer-provided accommodation as a result of regulatory requirements.
Catherine Desmond, Partner in the Landed Estates and Rural Business Group of UK top 20 Chartered Accountant Saffery Champness says:
The OTS is recommending a move away from exemption being available for particular classes of employees (currently qualifying because it is customary for them to have accommodation) to looking at whether the accommodation is actually required in each instance in order to get the job done.
Whilst there is a great deal to recommend a simpler, common-sense approach, achieving this in a fair manner would be dependent upon the drafting and implementation. In the short term the OTS has recommended a change to HMRC Guidance that makes it clear that consideration will be given to substantive duties and not just job titles when applying the existing tests.
Since many agricultural workers, shoot and other estate-based workers are provided with accommodation it is vitally important that employers do look carefully at the roles of individuals when claiming exemption rather than simply relying upon their job title. It will also be important for us, as advisers, to keep abreast of any changes to both guidance and legislation in this area.
No comments posted yet. Be the first to post a comment
Please enter your name
Please enter your comment
Your comment submitted successfully.Please wait for admin approval.
Some error on your process.Please try one more time.
GM crops are good for the economy and can reduce the amount of pesticides u...
Demand from smaller European markets has helped drive strong growth for UK ...
A lack of engineers, not enough people promoting the land-based industries ...
Environment Secretary Elizabeth Truss is launching the National Pollinator ...
Agricultural specialists have welcomed a potential financial boost for youn...
As retailers continue to participate in a highly competitive race to the bo...
New farm business income data from Defra, which focus on income from March ...
Agriculture has remained one of the industries in which workers are most li...
Prime arable land in the UK has seen a substantial year-on-year growth in p...