Employer provided accommodation does not create a taxable benefit in kind where it is provided:
- for the better performance of the duties of the employment
- and it is customary for employers to provide accommodation to employees where they carry out that particular kind of employment.
HMRC believes that the ‘customary’ part of this test is no longer applicable to many higher education and further education employers and has now published guidance to this effect. BUFDG has also published its own guidance for universities
CTG has been liaising closely with BUFDG on this issue and we understand that this review is now complete and will not apply more widely than the higher education sector. CTG responded to a call for evidence on this issue in 2016.