ECH18100 - Working Rule Agreements (WRA): Lodge Payments Paid Direct by Employer

Payments of lodging allowance made free of tax and NICs under a WRA do not cover employee's accommodation costs paid direct to hotels (or other establishments) by employers.

Nevertheless if employees are entitled to lodge allowances ECH18080 you should

• check whether the accommodation costs paid direct exceed the WRA specified lodge rate and only when they do
• seek recovery on the excess (note that the excess is a benefit in kind for tax purposes, and for NICs the particular Class of NICs due will depend on who has the contract with the accommodation provider).