Providing temporary accommodation for staff—whether for project-based work, training, or relocation—is a critical part of modern business logistics. However, without a clear, robust policy, employers can face confusion, compliance issues with HMRC, and unhappy employees. Your staff accommodation policy is more than just a document; it’s a statement of your commitment to employee welfare and fiscal responsibility.
For UK employers, the policy must balance employee comfort, tax efficiency, and operational simplicity. Let Housd help guide you through some of the fundamental areas to consider.
Here are the key inclusions your policy needs for a seamless and compliant process.
1. Defining Scope and Eligibility
The foundation of any good policy is clarity on who qualifies and for how long. This prevents internal confusion and ensures fair treatment across the business.
- Eligible Staff: Clearly define which employees qualify for company-provided accommodation (e.g., permanent staff on project secondment, new hires relocating, or fixed-term contractors).
- The ‘Temporary’ Rule: Crucially, your policy must define the maximum duration of a stay. This is vital for HMRC compliance. The accommodation is generally tax-exempt only if the employee is expected to be at the temporary workplace for less than 24 months. The policy should reflect this, establishing a clear line between temporary assignment accommodation and the provision of long-term ‘living accommodation,’ which has different tax implications.
- Location Criteria: The workplace must be considered ‘temporary’—meaning the employee is away from their normal or regular place of work. Defining what constitutes the employee’s ‘normal’ base helps solidify the claim for Temporary Workplace Relief.
2. Setting Accommodation Standards and Sourcing
This section sets expectations for the quality of accommodation and determines the selection process, ensuring consistency for all staff.
- Accommodation Type and Standard: Specify the company’s preferred type of accommodation. For any stay longer than a few weeks, consider a policy preference for serviced apartments or corporate housing over hotels. These self-contained units offer superior comfort, cooking facilities, and separate living/working spaces, which are essential for long-term productivity and well-being.
- Booking Procedure: To maintain cost control and enforce quality, all accommodation should be sourced and booked centrally (e.g., through a dedicated Relocation Manager or an approved partner like Housd). Your policy should clearly outline the step-by-step procedure for managers to request and secure a booking.
- Minimum Facilities: List the non-negotiable facilities the accommodation must provide. This usually includes high-speed Wi-Fi, a fully equipped private kitchen, reliable laundry facilities, and a decent level of furnishing.
3. Financial and Tax Compliance
The policy must clearly address how costs are handled to maintain tax efficiency for the business and transparency for the employee.
- Payment Method: For simplicity and maximum tax efficiency, the policy should mandate that the company pays the accommodation supplier directly. While employee reimbursement is an option, direct payment via a single supplier streamlines invoicing and minimizes the administrative burden associated with managing individual expense claims.
- Included Costs: Explicitly list what the company covers. This must include the rent/fees, utilities (gas, electricity, water), Council Tax, and Wi-Fi. Clarifying these ‘associated costs’ prevents disputes and ensures their tax treatment aligns with the principal accommodation benefit.
- Subsistence (Per Diem): If the accommodation is self-catering, the policy needs to specify the employee’s allowance for food and other daily incidentals (the ‘subsistence’ costs). This allowance is separate from the accommodation cost and must be managed according to HMRC rules for business travel expenses.
4. Employee Responsibilities and Conduct
To protect the company’s investment and its reputation with accommodation partners, employees must be aware of the rules governing their temporary residence.
- Care of Property: Include a clause outlining the employee’s responsibility to treat the serviced apartment with care and respect. This should detail liability for any damage beyond fair wear and tear.
- Guest and Family Policy: Be explicit about rules regarding non-work guests, partners, or children. Define maximum occupancy limits and specify if a prior declaration or approval is required for family visits to avoid complications with the property provider’s insurance or terms of service.
- Check-out and Notice Period: Define the notice period required for an early departure, which helps the business avoid financial penalties. Furthermore, clearly state the expectations for cleanliness upon check-out, such as removing personal belongings and ensuring the apartment is left tidy.
Staff Accommodation? Your Go-To Partner Is Housd
By developing a policy that addresses these core elements, UK employers can create a supportive, predictable, and compliant structure for staff accommodation.
Contact Housd today to discuss our corporate housing solutions.
