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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: examples and comments: when is accommodation regarded as living accommodation?

NMWM10110 | Accommodation and accommodation offset: examples and comments: when is accommodation regarded as living accommodation?

From HM Revenue & Customs · National Minimum Wage Manual

It is not possible to provide a definitive list of all the circumstances and arrangements that might be regarded as living accommodation (NMWM10100). Compliance Officers need to form a view based on an examination of the actual arrangements.

In general, the type of accommodation provided to the worker by the employer cannot be regarded as a definitive factor. The issue is whether the arrangements in place enable the worker to live in the accommodation (NMWM10100).

Compliance Officers will not:

  • consider the standard of the facilities within or reasonably close by to the accommodation, or

  • whether there are cooking facilities, or

  • whether or not the employer provides free meals.

Where workers raise concerns about the standard of living accommodation they should be advised to contact the local authority who can undertake a health and safety assessment.

There may be cases when Compliance Officers accept that the accommodation offset applies but where workers or their representatives contend that it should not, because they believe the accommodation falls short of “living accommodation”. If so, they should be reminded that they may take their own case to Employment Tribunal if they wish. In these cases NMW Head Office should be notified.

It is not always easy to determine whether the accommodation being provided is living accommodation. The following examples and comments are provided to help illustrate some of the issues which may arise. These examples are provided as background information only and, as only partial information is given, they should not be used as the sole basis for forming an opinion.

Manual PageExample
NMWM10120Example 1 - Board and lodging in bed and breakfast accommodation
NMWM10130Example 2 - Multi-occupancy of the accommodation
NMWM10140Example 3 - Employer provides hotel accommodation
NMWM10150Example 4 - Employer provides facilities which are not used by the worker
NMWM10155Example 5 - Worker provides own furniture
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