Licence to occupy

This agreement is for use in conjunction with a clause requiring an employee to live on site for the better performance of their duties (see our accommodation clause).  We recommend that you seek specialist advice on the rights of an employee occupying tied accommodation.

As a benefit

Provision of accommodation will be regarded as a benefit, and therefore part of remuneration. However, if the employee is required to live on site for the better performance of their duties, it may not be taxable.

National minimum wage

Note that with regard to calculating whether the employee has been paid the relevant national minimum wage, the provision of accommodation can only be taken into account up to a certain set amount, see HMRC website for the latest figure.