Furniture in accommodation provided by employer

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Introduction

The provision of furniture by an employer to an employee is usually linked to the provision of living accommodation to the employee.

Whether the provision of furniture in employer provided accommodation is treated as a taxable benefit in full, or is capped, depends on whether the reason for the provision makes it an exempt benefit under specific legislation.

Annual value

If the furniture provided to the employee remains the property of the employer, the value of the benefit for tax purposes is based on the annual value of the furniture as an asset ― see the Assets ― made available to an employee guidance note.

Broadly speaking, the annual value is 20% of the market value of the furniture when it is first made available to the employee.

Cap on expenses connected with living accommodation ― application to provision of furniture where accommodation is exempt

If the living accommodation is exempt, then the amount

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