ECH18125 - Working Rule Agreements (WRA): Caravan Accommodation Provided by Employee
The principle that employees who receive a lodging allowance
must be broadly incurring matching expenditure
ECH18075 also applies where employees
use their own caravans for lodging whilst away from their normal
place of residence.
The full rate of WRA specified lodging allowances may be paid
tax and NIC free to employees who use their own caravans
provided the employee
- qualifies for the tax free lodging allowance ECH18080, and
- pays a commercial site fee, for example, at a caravan site
the CIO should ask questions to confirm that
- the employee has paid commercial site fees where the full WRA specified lodging allowance rate is paid, or
- a reduction in the lodging allowance rate has been made to reflect the fact that accommodation costs have not been paid and the fully reduced rate of lodging allowance is expended by the employee on meals. (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
If the CIO is unsure whether the lodging allowance should be
paid without deduction of tax and NICs or the employer disagrees
with the CIOs view they should follow the guidance in
ECH18130.
If the employer provides the caravan see
ECH18120.
