Lodging Allowance application guide

Application for Lodging Allowance under the SJIB National Working Rules

Please read the following notes carefully before completing the application.

To be eligible to receive a lodging allowance free of income tax employees must meet the following criteria:

  • The employee is employed by or contracted by an organisation which is working to the SJIB National Working Rules.
  • Employees are required by their employer to work away from their normal work location where daily travel from their home to this new temporary location would be onerous.
  • Employers must be assured that employees have ongoing financial commitments at their home address while lodging.
  • Employees must complete the declaration(s) in the application form.  Employers have the right to ask employees to complete a separate form when moving to a new location.

An employee will be taxed accordingly on lodging allowance for nights when he/she is not staying in nor has paid for accommodation – for example, nights when he/she is staying at their home address and are not paying to lodge elsewhere.  It is an employee’s responsibility to inform his/her employer of this. 

Any lodging allowance paid to an employee which is paid tax-free through a working agreement should not be shown on his/her P11D form and should not be included in a tax return.

An employee may be required to provide employers with documentary evidence that he/she is paying for lodging and that he/she continues to have ongoing financial commitments at their home address.

False declarations or failure to notify changes in personal circumstances which affect the payment of tax may lead to prosecution.

If you have any questions about the deduction of income tax from lodging allowance you should contact your local HMRC office.

Notes for applicants

Section A

Employees personal details and permanent home address where they continue to have on-going financial commitments.

Section B

If an employee is lodging in a guest house/hotel, details should include the name of the lodging and the full address.  If this is a rented accommodation then just the address needs to be given. Please provide the start and end dates of the lodging period.

Section C

This is the employer’s name and usual business address where the employee claiming lodging allowance is based.

Section D

Employees should declare which statement(s) is relevant. To receive the allowance tax-free employees need to tick point i to state that normally he/she would live less than 35 miles from their permanent work location and this temporary work location is now more than 35 miles away from their permanent place of work.  It will also be necessary to tick either ii or iii depending on each employee’s own personal circumstances.

This declaration needs to be signed and by doing so employees are stating that they understand a deliberately false declaration could lead to prosecution by HMRC.

Notes for Employers

Section E

By signing this section employers are declaring that as far as they are aware the information on the form is accurate.  Employers may ask employees to provide evidence of the lodgings stated in Section B, for example a receipt or invoice for the lodging and evidence to confirm continuing financial responsibility in their own home, i.e. a mortgage/rent statement.

More info

If you require any information on how to complete this form please contact the SJIB on 0131 445 9216 or Contact us.