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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
, see all updates

Accommodation and accommodation offset: the accommodation offset

Relevant legislation

The legislation that applies to this page is as follows:

For pay reference periods commencing

* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulations 9, 10, 14(1), 15, 16 & 16(3) 
* before 6 April 2015; National Minimum Wage Regulations 1999, regulations 9, 30, 31(1)(i), 36, 36A & 37 

Accommodation is the only benefit in kind that can count towards the national minimum wage and special rules apply when calculating a worker’s national minimum wage pay. These special rules are known as the accommodation offset.

The accommodation offset only applies when the accommodation is both:

  • regarded as provided by the employer to the worker (NMWM10040), and
  • suitable to be considered “living accommodation” (NMWM10100).

When both these conditions are satisfied national minimum wage pay should be calculated using the accommodation offset (NMWM10030) unless the accommodation is provided by a council or social housing provider when special provisions apply in certain circumstances (NMWM10180).

If the accommodation offset does not apply, any charge the employer makes for accommodation (NMWM10170) must be taken into account by applying the national minimum wage deduction and payment regulations in the normal way.