sir in case of non-job related accommodation, why don't we take 20% of household bill as taxable benefit? in one of the questions in kaplan, household bills are added as it is to the total taxable benefit column. but as per the rules only 20% should have been taxable. so i dont understand this
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expenses connected with living accommodation
6y ago#1The 20% is for the use of assets benefit (ie the asset belongs to your employer but you use it for private purposes). The payment of a bill is not an asset! If your electric bill is £200, then there's no difference from a tax perspective if your employer gives you the £200 to pay the bill (eg in the form of a bonus) or if your employer pays the bill for you directly. Either way, you are £200 in pocket and therefore the full £200 is taxable on you.
Good answer Lucy and of course correct
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