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HMRC internal manual

National Minimum Wage Manual

accommodation offset: when is accommodation regarded as provided by the employer? example 2 - employer pays the cost of accommodation

Example 2

A sales manager wins an internal company competition for exceeding his sales targets. He has the option of taking a holiday abroad or a cash equivalent. The manager decides to take the holiday abroad. The employer pays for the cost of all flights and hotel accommodation at the resort.


Although the employer is paying all the costs related to the manager’s accommodation requirements, the employer cannot be regarded as providing the accommodation as none of the situations [1] to [6] apply (NMWM10040).

When deciding whether an employer is providing accommodation to a worker, the test is not whether the employer pays the cost of the accommodation, but whether at least one of the situations [1] to [6] apply (NMWM10040).