An accommodation allowance is paid to cover expenses when employees are temporarily away from their home for work up to 21 days. Sometimes this allowance covers expenses for permanent employees who are also away from their home.
As an employer providing £175,000 for employees living accommodation including many types of charge. Such as council Tax , water and sewerage charges , heating, lighting and cleaning.
Repair, maintenance and decoration fee, furniture for daily use, staff for upkeep of accommodation also included from this charge.
How Many Types Of Accommodation?
There are two types of accommodation allowance for employees including permanent, temporary and relocation .These types of accommodation allowances can vary from one organization to another.
Temporary accommodation allowance for those employees who require short time lodging due to business trips, project assignments. This type covers expenses like hotel stays, serviced apartments, or other temporary housing solutions. Temporary accommodation allowance designed to help employees maintain a reasonable standard of living for a short time.
Permanent accommodation allowance for those employees who find a long term place to live. If a job takes a new place employee’s must need a permanent or rent home for living.
Different employers might have different rules for who can get this allowance.
Another thing, for finding out cheap places without consider any quality for both uses we mentioned earlier, this xodomo helps you a lot.
Who can get help with a place to stay at work?
Usually the 4 types of people who can get help with a place to stay at work :
- Bosses and big managers.
- People in important jobs who have to move.
- People who work far away.
- People who work in other countries.
What is the documentation and application process?
When you ask for help, a place to stay usually needs some documents. A paper that proves where you live or will live like a rental paper or bill.
Additionally, you need some paper that proves spent money on, like hotel bills or moving company papers, if you’re moving.
Some papers you have to take with you for future need. Such as a tax paper and a paper that says you really work there and why you need the place to stay. Most of the time tax papers are needed depending on your job.
Application Process
You should follow some process to apply for accommodation allowance :
First, talk to your HR people. They’ll tell you what to do.
Then, get the papers they need from you and give them to your job. You might have to fill out some forms or do it online.
Finally, the HR people will look at your papers. They’ll check if you can get help and if it follows the rules of your job.
How is the accommodation allowance calculated?
The price of living accommodation is £175,000 where the house cost £5,000 to rent. The boss pays £6,600 a year. The worker pays £6,00 every month which adds up to £7,200 a year.
| Rental Value | £ 6600 |
| Less: rent paid by employee | £ (7200) |
| Excess rent | £ 600 |
However, if the house costs more than £175,000, we need to figure out an extra charge. Here is how to do it !
| Cost of accommodation | £ 175,000 |
| Less: | £ (75,000) |
| Excess Cost | £ 100,000 |
| £100,000 at 2.5% | £ 2500 |
| Less excess rent paid by employee | £ (600) |
| Cash equivalent of additional charge | £ 1900 |
FAQ’s
Can my employer pay my rent in the UK?
Yes, usually, a company can rent a house for an employee in the UK.
How much rent is tax-free in the UK?
You don’t have to pay tax on the first £ 1000.
Can I rent without proof of income in the UK?
No, they want to see a paper that shows how much money you earn from your job.
Conclusion :
In summary, in the UK employees get help with places to live as part of their salary. This helps with different housing situations. In this article we explore different types of accommodation. Then, we showed who and how an employee can get help with a palace to stay at work.
After that, we delve into the documentation and application process. Finally, we show how an employee can easily calculate accommodation allowance .