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HMRC internal manual

Employment Income Manual

Tax treatment of working rule agreements: operation of agreements by employers

The special tax procedures for working rule agreements only apply to the payment of travel and lodging allowances. Where the provision of a benefit is concerned (for example, the use of a van) the strict statutory procedures apply. See the guidance at EIM22051 and onwards in this connection.

For a list of the working rule agreements for which special taxation procedures have been established see EIM71320. These procedures can operate only where the employer makes payments in strict accordance with the terms and conditions of the working rule agreement. The employer need not be a member of the relevant employer’s federation, nor do the employees have to belong to the trade union concerned. Payments made outside the framework of a working rule agreement must be dealt with for tax purposes as described in EIM10070 and in the Employer’s Further Guide to PAYE and NICs