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Where Taxpayers and Advisers Meet

Lodging Allowance, taxable?

KC75
Posts: 4
Joined: Thu Jun 07, 2018 9:36 am

Lodging Allowance, taxable?

Postby KC75 » Thu Jun 07, 2018 2:47 pm

My employees are paid a £35 per night lodging allowance (their hotel is also paid for) when they work away.

I've always treated this as part of their normal pay, so tax & ni are deducted etc.

However, they are insisting that it should be a tax free payment & have pointed me in the direction of this hmrc article: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim71307

I can't find a link to the application form mentioned in this article & i'm getting the impression it only applies if you part of a union/working rule agreement, which none of us are.

Can anyone help me with this?

bd6759
Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: Lodging Allowance, taxable?

Postby bd6759 » Thu Jun 07, 2018 5:27 pm

You need to read the whole chapter starting at EIM71300

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim71300


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