Tweaks to the National Minimum Wage Manual
18 March 2021
HMRC has made some changes to the National Minimum Wage (NMW) Manual to include several amendments to how things are worded, along with an additional example relating to living accommodation.
The provision of accommodation, provision of living accommodation and legislative prescription have all been reworded. The reference to provision of a bed has been amended to sleeping facilities, and there has also been a rewording of when the accommodation offset applies. The CIPP Policy team’s interpretation of the changes is that employer-provided accommodation doesn’t need to be furnished or up to a high standard, but just needs to be liveable.
The additional example centres on when accommodation is regarded as living accommodation, and looks at when a worker provides their own furniture. The example is shown, in full, below:
Example 5
An employer operates a delivery company. The worker has a tenancy agreement for a 1-bedroom, unfurnished flat which is owned by the employer. The flat has an outdated bathroom suite which includes a shower, sink and a toilet for the worker to use, in addition to a central heating system. The worker has decided, in agreement with the employer, to provide their own furniture.
Comment
The employer is likely to be providing living accommodation. Although the worker has provided their own furniture, the facilities provided by the employer enable the worker to live in the accommodation. The fact the bathroom is dated is not a consideration for living accommodation.
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