In theory, limited company directors can charge the company ‘rent’ as a proportion of the rent or mortgage interest paid by the household, however, this rental income must be disclosed on your annual self-assessment form, and a formal contract would need to exist to cover this rental agreement.
How is housing allowance calculated for government employees?
As at 1 July 2015, the quantum of the housing allowance is R1 200 per month, paid to eligible employees and will be adjusted by inflation each year in July. For employees who do not own homes, the housing allowance will be diverted and accumulated in the Individual Linked Savings Facility (ILSF) to be accessed when employees acquire homeownership.
When is employee housing is taxable to the employee?
Depending on the circumstances, certain housing and subsistence benefits can be taxable to the employee, and sometimes these benefits can be a deductible business expense for your company. Several kinds of housing arrangements for employees include: Employer paying for the housing of employee’s choice, often using a housing allowance.
Who is not entitled to a housing allowance?
Employees who are on middle management and senior management levels (11 -16) are on Total Package Salaries and therefore do not receive a separate housing allowance. However, they are able to access other services of the scheme, such as education and counseling, housing loans and housing stock facilitation, and enrolment.
Who is eligible for housing allowance by pscbc?
Housing Allowance – Home owners In terms of the PSCBC Resolution 7 of 2015, Employees who are home-owners and have submitted proof of title deeds/Permission to occupy certificate including the affidavit that the immediate family occupy the house, are eligible to receive the housing allowance of R1200. This refers to new and old employees.
