As you know, Ukrainian refugees are being hosted by private individuals and organisations in spare rooms and properties across the UK.

The Government is providing hosts with a monthly payment of £350 per property, administered by local authorities. This payment is only given to those who register as sponsors through the Homes for Ukraine scheme and will be paid for up to 12 months. Rent-free accommodation must be provided for at least six months, although hosts are allowed to ask the refugees to contribute towards the cost of meals provided and extra energy and water used. The host is not allowed to claim expenses against the income received. The monthly payments are tax-free and national insurance is in the hands of the host. These payments are also disregarded as income for state benefits, council tax discounts and rent-a-room relief.

In cases where the host is a company, the payments are exempt from corporation tax. While a residential property is used for the Homes for Ukraine scheme, it is not subject to the annual tax for enveloped dwellings.

Learn more about tax implications by getting in touch here.