tax on benefits / BIK

[lal123]

Hi
i have received a new job offer, where my potential employer is ready to pay for my living accommodation and childcare and/or VHI expenses In this full time employment I work during unsocial hours and weekends. I would like to know
1. if these payments towards my living accommodation and childcare expenses is taxable if paid by employer ,
2. is there any documents that I should submit to get these … (like tenant agreement or child minder’s receipt for payment , ETC.)
3. how the payment towards living accommodation will get affected if and when I own a house with owner occupancy tax benefit
4. is there any benefits that I am entitled to, for working during unsocial hours
5. what is benefit of kind
6. Is the benefits mentioned above come under BIK ?
7. What are the tax rate applicable to BIK ?

Please advise me.

 

[Domo]

Any cash payment to you is taxable - therefore it does not matter if the employer is giving you higer wages, or the amounts for your rent and childcare.

If your employer is paying these costs directly, and you will not be receiving the cash, the same amounts will be taxable on you as a Benefit in Kind through your payroll.

You will be taxed on these benefits (or cash) at your marginal rates of tax.

However, certain accommodation costs are not considered to be BIK such as provision of accommodation where the employee is required to live on the premises because of the nature of the trade.

What are you working at?