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CW 16E: Accommodation expenditure: new employees
or “Tax-free accommodation for new employees in special work situations”
You could also call this:

“Rules for tax-free accommodation when you work at multiple locations”

If you work for an employer who requires you to work at more than one workplace regularly, and at least one of these workplaces is far away, this law might apply to you. If your employer provides you with a place to stay or pays for your accommodation at the distant workplace, this benefit is considered exempt income. This means you don’t have to pay tax on the value of the accommodation or the amount your employer pays for it.

However, there are a couple of situations where this law doesn’t apply. If your employment contract says you could get more pay instead of the accommodation, then the accommodation benefit might be taxable. Also, if you only have two workplaces and one of them is a home office, this law doesn’t apply.

It’s important to know that this law is specifically about accommodation provided by your employer when you have to work at multiple locations, including a distant one. It’s designed to help employees who need to travel for work without making the accommodation benefit taxable.

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Next up: CW 17: Expenditure on account, and reimbursement, of employees

or “Money your employer spends on your work expenses is tax-free”
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Part C Income
Exempt income

CW 16FAccommodation expenditure: multiple workplaces

  1. This section applies when—

  2. the employment duties of an employee require them to work on an ongoing basis at more than 1 workplace; and
    1. 1 or more of those workplaces is a distant workplace; and
      1. in connection with the employee's employment or service, their employer provides accommodation or pays an amount for the employee's accommodation at the distant workplace.

        1. This section does not apply—

        2. to an amount that is the value provided or the payment by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount:
          1. when the employee has 2 workplaces and 1 of those workplaces is a home office.

            1. The amount that is the value provided or the payment by the employer is exempt income of the employee.

            Notes
            • Section CW 16F: inserted, on (applying for the 2015–16 and later income years), by section 24(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).