Expenses question

[JohnJay]

I work for a company based in the west but work in Dublin, so I work for home. I am renting a house at the moment but hope to buy something soon. I am due a pay rise shortly, and the company are willing to pay me this in anyway possible. Would it be possible for them to pay me a monthly accommodation allowance? If they did, would it be taxable? I already get a €300 per month food allowance and my transport expenses are paid for

 

[Cashstrapped]

You cannot get an accomodation allowance towards your own Principal Private Residence so you would be leaving yourself open to Benefit in Kind if it is even possible to pay someone their pay rise this way as it could be seen as Tax Avoidance and you could bring the Revenue down on yourself big time. Would you not rather have your payrise go through the correct way this would increase your mortgage power when you try buy your own place and also benefit you if any redundancy situation came into place, allowances would not come into any calculations so in the long run you would only be selling yourself short.

However if you would like the benefit of your payrise somewhat you could get it paid as a bonus payment although this too would be taxable. Another option could be that when you do get your own house that your Employer in effect pays to "setup" your home office so he pays for say your computer/ business phone lines & heat/ lighting.

Last word would be, be wary of any Employer who is Quote: "Willing to pay me this in anyway possible", you may be sure that if the Revenue were to Audit them and ask to justify these payments they would not be very willing to say they had any such arrangement in place I would think they would more likely say that they leave it up to the Employee to declare any BIK to the Revenue.

 

[bazermc]

Good answer cashstrapped