SE71310 - Tax treatment of Working Rule agreements: lodging allowances - single employees without dependants

In addition to the procedures described in SE71307 - 71309, it is also possible with effect from 6 April 1987 for single employees without dependants to receive lodging allowances without deduction of tax if they certify to the employer that:

• they are incurring additional expenditure on lodging away from their permanent residence, and
• they have continuing liability for the expenses of maintenance of their permanent residence situated in the United Kingdom at which they live whilst not working away, and
• the permanent residence is owned by them, either freehold or leasehold, or is a tenanted property for which, by virtue of a written agreement on a commercial basis, they have continuing financial obligations whilst working away.

In practice, these procedures may be applied also to married employees who have no dependants actually living at their permanent residence.

The new procedures described in this paragraph apply only to lodging allowance payments made after 6 April 1987, with the lodging allowance application forms ( SE71307) being amended accordingly.