Accommodation for Employee

mcsean2163

I have a potential contract for an employee in south Ireland.

He is based in Dublin and will need to relocate for 4 months.  Can I pay for his accommodation or is that a benefit in kind that needs to go on his payroll?

davindub

BIK.

Unicorn55

Check with Revenue. If I remember right, you can provide accommodation for up to 3 months if relocating employees. Requiring them to work away from their normal place of work for 4 months might be different again, ie you can just pay expenses.

There's a help sheet from Revenue called Removal and relocation expenses

davindub

Unicorn55 wrote: »

Check with Revenue. If I remember right, you can provide accommodation for up to 3 months if relocating employees. Requiring them to work away from their normal place of work for 4 months might be different again, ie you can just pay expenses.

There's a help sheet from Revenue called Removal and relocation expenses

Sorry missed the temporary part.

The relocation costs are aimed towards permanent moves, the allowable costs are fees associated with moving rather than rent etc.

For temporary work 100 km or more away from work, there is an overnight rate specified by revenue as the civil service rates, approx 130 pn for 1st 14 nights, a reduced rate for the next 14 and approx half after this, for periods of longer than 56 days you need to apply to revenue to agree the rate to be applied. This payment is employee expenses rather than BIK.

Unicorn55

"You may also pay rent for temporary accommodation for a period of not more than three months. " Revenue

mrawkward

There may be a workaround where the end client provides the accomodation....probably worth investigating.

davindub

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-04.pdf

The complete guide to subsistence rather than relocation expenses (i.e. permanent). As they are working away from home for a period, these are the rules to apply.