HMRC internal manual

Compliance Operational Guidance

COG930670 - Supporting Guidance: employer compliance: guidance by subject: working rule agreements (WRA): lodging allowance action required by the employer

Employers must:

  • be able to demonstrate that the method by which the employee was recruited or transferred permitted payment to be made tax free
  • examine all completed lodge certificates, and

    • challenge any doubtful certificates
  • retain the lodge certificates

    • for a maximum of six years, or
    • until an ECR is undertaken, if this is within the six year period
  • be satisfied that the employee is entitled to receive the tax free allowance under one of the three categories

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