Q. We have an employee currently seconded from our EU-based parent company. Initially, he was due to be with us for 18 months, twelve of which have already elapsed. We are paying for a flat for him on the basis that it is a temporary workplace, so not taxable on him. We are considering extending his stay for a further 18 months, as he has made a very positive contribution. Are we able to continue paying the rent on the flat tax free until two years has elapsed?
A: A workplace is only "temporary" as far as the expectation is that it will be the workplace for less than two years. If you decide that you are going to extend the secondment beyond two years, the trigger date for the rent payments becoming a taxable benefit is the date that decision is made, because it can no longer be said that the expectation is that your site will be the workplace for less than two years.
Further information about the secondment of employees to the UK can be found in HMRC’s Employment Income Manual.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
.jpg)
