EIM11306 - Accommodation: earnings within Section 62 ITEPA 2003
Section 62 ITEPA 2003
Section 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).
»Ê¹ÚÌåÓýappre are four possible ways accommodation counts as earnings under Section 62.
- »Ê¹ÚÌåÓýapp employee owns or rents the accommodation. »Ê¹ÚÌåÓýapp employer pays rent allowance or extra salary (see EIM11307).
- »Ê¹ÚÌåÓýapp employer provides accommodation. »Ê¹ÚÌåÓýapp employee has a continuing right to choose a higher wage instead (see EIM11308).
- »Ê¹ÚÌåÓýapp employer provides accommodation. »Ê¹ÚÌåÓýapp employer pays a gross wage from which rent is deducted (see EIM11309).
- »Ê¹ÚÌåÓýapp employer provides accommodation. »Ê¹ÚÌåÓýapp 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).