20 June 2019 
Caroline Jones, Employment tax director
Caroline Jones (BUFDG) and Paul Moreels (KPMG) talked us through the issue of work-related accommodation and HMRC’s communication in relation to the withdrawal of the 'customary' exemption with effect from 6 April 2019. The session covered HMRC’s approach to the issue of tax-free accommodation including the background to the withdrawal of the ‘customary’ exemption for employees in the HE sector, particularly in relation to Vice-Chancellors and the fact that it was a two-legged test: it must be customary AND for the better performance of the individual’s duties of employment. There was a discussion of other potential exemptions including:
Paul explained that where accommodation meets the criteria for being provided tax-free there are various associated exemptions and the session covered off what is exempt. There was also a discussion on which benefits in kind should be declared. Even if the provision of the property itself can be provided tax-free, utility costs, telephone and the provision of furnished or partly furnished accommodation should be declared on forms P11D.
Finally, the calculation of accommodation benefit was demonstrated bringing out the difference between properties that cost less than £75,000 and those in excess of £75,000.
Following the conference and in light of recent emails from HMRC seeking additional information KMG and BUFDG will be running a joint webinar to expand on the conference session and discuss further developments.
