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HMRC internal manual

Employment Income Manual

Tax treatment of working rule agreements: lodging allowances: zoning

An alternative procedure known as zoning has been introduced in relation to some agreements in respect of single operatives who do not meet the conditions in EIM71307. This provides for them to receive tax-free lodging allowance payments whilst temporarily working on sites outside a zone of 50 miles’ radius from their home address, provided that they normally work on sites within this “home zone”.

These zoning arrangements are similar to the detached duty rules (see EIM10060) except that the home zone is treated as the normal place of work. Lodging allowances may be paid tax-free under the zoning arrangements for a maximum of 12 months, although this time limit does not apply in the case of allowances paid tax-free under the certification arrangements described at EIM71307.

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