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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: working rule agreements (WRA): lodging allowance conditions of payment and action required by CIO

When payments of a lodging allowance COG930650 are identified during the review you should check that all of the following conditions have been met, before accepting the payment as satisfactory.

The Employee

  • has stayed away overnight
  • has incurred accommodation costs
  • has met the conditions of recruitment or transfer listed at EIM50625 
  • has completed an acceptable lodge certificate
  • is entitled to receive the tax free lodging allowance under one of the following categories

    • dependants - see EIM71308 
    • financial commitment - see EIM71310 
    • zoning - see EIM71309 

In addition you should confirm that the employer had adopted safeguards against accepting false applications by asking

  • whether all completed lodge certificates are examined
  • how the information shown on the certificate is checked and
  • if dubious certificates are challenged

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

For guidance on caravans used for lodging see COG930730 or reimbursements of actual accommodation costs see COG930690