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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
, see all updates

Accommodation and accommodation offset: establishing the total charge for living accommodation when the accommodation offset applies

When the accommodation offset applies (NMWM10020) any charge the worker must pay to be allowed to use the accommodation is regarded as a charge for the provision of the accommodation. It should therefore be:

  • included when determining the total charge for the accommodation, and
  • taken into account when applying the accommodation offset provisions.

The amount to be taken into account in these circumstances includes both:

  • charges made by the employer for the accommodation itself (e.g. rent), and
  • any other mandatory charges a worker must pay the employer in order to be allowed to use the accommodation (e.g. deductions for gas, payments for waste disposal etc).

If the charge does not have to be paid in order for the worker to use the accommodation then it is not included in the total charge for the accommodation and is not used when applying the accommodation offset provisions. However, it must still be taken into account when calculating national minimum wage pay but using the deductions/payments regulations in the normal way.

In all cases:

  1. work out what charges must be paid in order for the worker to use the accommodation and include these in the total charge for the accommodation when applying the accommodation offset provisions.
  2. apply the national minimum wage deduction and payment regulations in the normal way to any remaining accommodation related charges.