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Contents

Official guidance
National Minimum Wage Manual

NMWM10000 · Accommodation and accommodation offset

  • NMWM10010 · Introduction
  • NMWM10020 · The accommodation offset
  • NMWM10030 · The effect of the accommodation offset
  • NMWM10040 · The employer is responsible for the provision of accommodation
  • NMWM10050 · Examples and comments: when is the employer regarded as responsible for the provision of accommodation?
  • NMWM10060 · When is the employer regarded as being responsible for the provision of accommodation? Example 1: worker has a joint tenancy agreement
  • NMWM10070 · When is the employer regarded as being responsible for the provision of accommodation? Example 2: employer pays the cost of accommodation
  • NMWM10080 · When is the employer regarded as being responsible for the provision of accommodation? Example 3: worker chooses not to use the accommodation
  • NMWM10090 · When is the employer regarded as being responsible for the provision of accommodation? Example 4: employer provides a caravan pitch
  • NMWM10100 · Living accommodation
  • NMWM10110 · Examples and comments: when is accommodation regarded as living accommodation?
  • NMWM10120 · When is accommodation regarded as living accommodation? Example 1: board and lodging in bed and breakfast accommodation
  • NMWM10130 · When is accommodation regarded as living accommodation? Example 2: multiple occupancy of the accommodation
  • NMWM10140 · When is accommodation regarded as living accommodation? Example 3: employer provides hotel accommodation
  • NMWM10150 · When is accommodation regarded as living accommodation? Example 4: employer provides facilities which are not used by the worker
  • NMWM10155 · When is accommodation regarded as living accommodation? Example 5: worker provides own furniture
  • NMWM10160 · Establishing the total charge for living accommodation when the accommodation offset applies
  • NMWM10170 · When the accommodation offset does not apply
  • NMWM10180 · Special provisions for councils and social housing providers
  • NMWM10190 · Special provisions for students who also work for their Further or Higher Education Institution
  • NMWM10200 · Examples of calculating pay for National Minimum Wage where accommodation is provided free of charge
  • NMWM10210 · Examples of calculating pay for National Minimum Wage where charge for accommodation is at or below the accommodation offset rate
  • NMWM10220 · Examples of calculating pay for National Minimum Wage where charge for accommodation is above the accommodation offset rate
  • NMWM10230 · Considering the charge for living accommodation against the offset
  • NMWM10240 · Considering the charge for living accommodation against the offset: scenario 1, payments for rent not aligning with pay reference periods
  • NMWM10250 · Considering the charge for living accommodation against the offset: scenario 2, time work being performed with paid absence
  • NMWM10260 · Considering the charge for living accommodation against the offset: scenario 3, accommodation charges apply to multiple occupants
  1. Accommodation and accommodation offset: contents
  2. Accommodation and accommodation offset: living accommodation

NMWM10100 | Accommodation and accommodation offset: living accommodation

From HM Revenue & Customs · National Minimum Wage Manual

Relevant legislation

The legislation that applies to this page is as follows:

  • National Minimum Wage Regulations 2015, regulations 9, 10(f), 14(1), 15, 16 & 16(3)

For the accommodation offset (NMWM10020) to apply:

  • the employer must be regarded as responsible for the provision of the accommodation to the worker (NMWM10040), and

  • the accommodation must be regarded as living accommodation.

To form an opinion on whether the accommodation can be regarded as living accommodation, it is necessary for the Compliance Officer to consider the full circumstances and arrangements in place.

Although accommodation may provide the worker with access to and free use of suitable sleeping, washing and toilet facilities, these facilities are not the only factors to consider.

As long as the accommodation is habitable, the standard or age of the facilities provided do not have to reach any set standard to be considered as living accommodation but should be within the accommodation itself or reasonably close by. Compliance Officers should form a view based on an examination of the actual arrangements in place.

The accommodation does not have to include all the items a worker may desire. Living accommodation may still be provided when there is:

  • a shared bathroom with no shower,

  • no facilities to wash clothes.

Some example scenarios and comments are provided at (NMWM10110).

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