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HMRC internal manual

Employment Income Manual

Accommodation: board and lodging and other accommodation that is not living accommodation

Part 3 Chapters 1 and 10, ITEPA 2003

Board and lodging is not living accommodation (see EIM11321). Where board and lodging is provided, earnings may arise under:

  • Section 62 ITEPA 2003 for all employees regardless of their rate of pay (see EIM11306 onwards) and
  • Part 3 Chapter 10 for any employee (for 2015/16 and earlier - who is not in lower-paid employment (see EIM20007)). The cash equivalent of the benefit is the cost to the employer of providing the benefit, less any amount made good by the employee (see EIM21102). From the 2017/18 tax year the latest date for making good when calculating the taxable value of the benefit of board and lodging is 6 July following the tax year in which the board and lodging is provided

See example EIM01025.

Where there are earnings under Section 62 then the cash equivalent of the employment related benefit under Chapter 10 is the difference between the amount of earnings under Section 62 and the cash equivalent of the benefit as determined by Section 203 ITEPA 2003 (see EIM21101).

In appropriate cases remember the possibility of Section 337 or 338 ITEPA 2003 relief as a business travelling expense (see EIM31805).

The same rules apply to other types of accommodation that are not living accommodation. For the rules covering the value of the use of land, for Part 3 Chapter 10 purposes see EIM21632.