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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Tax treatment of agricultural workers: board and lodging exemption for lower paid: background

Section 62 ITEPA 2003 and Extra-Statutory Concession A60

In most industries where an employee, who is in lower paid employment is provided with free board and lodging there is no tax charge on it. That is because the board and lodging has no money’s worth, see EIM00530 onwards.

Agricultural workers are in a different position. Generally, an agricultural worker whose contract provides for a net cash wage and free board and lodging will be entitled under the Agricultural Wages Act to take a higher cash wage and make his or her own arrangements for accommodation. In these circumstances the worker would normally be taxable on the higher wage, see EIM01020.

By concession, until 5 April 2010, HMRC accepted that, provided certain conditions are met, the agricultural worker is chargeable on the net cash wage, excluding any payments for board and lodging. This put the agricultural worker in the same position as employees in other industries.

The conditions that have to be met are set out in the concession. For the text of Extra-Statutory Concession A60 see EIM50012.

ESC A60 was withdrawn with effect from 6 April 2010.