16 July 2020 
Julia Ascott, Employment Taxes Specialist
There have been major changes in the way HMRC will expect the HE sector to report accommodation benefits, particularly from the 2020/21 tax year. In March 2019, HMRC removed the customary tax exemption that many universities relied upon for Vice-Chancellor and others accommodation. This led universities to apply to HMRC instead for representative occupier status (a concession dating back to 1977) to ensure that a taxable benefit did not arise on the provision of this accommodation for various members of staff; HMRC were most obliging.
Then in March 2020, the HE sector was told that the representative occupier status woudl cease to apply from April 2021. From that point onwards, universities would have to either rely on other exemptions (which are restrictive and limited), remove the benefit (perhaps offering an alternative) or provide a taxable benefit to their employees.
Given this upheaval, BUFDG have been working closely with UCEA to provide members with an update of the rules from a tax and HR perspective to help universities make decisions and decide on next steps.
UCEA and BUFDG are pleased to provide the Accommodation Benefit guidance document.
Going forward, we are planning on running a Time to Talk session around September time, details TBC.
As ever, any questions please email me.
