Employee Housing allowance and Tax benefit

Hi,

I am recently joined a company as a Finance executive where I have to do Payroll as Usual. One of my employee came from Scotland to London to Join in our company. My company Director ask him to stay nearby the office. (Note: It is not in the Office Block just surronding area to help in the business). Is it Possible He can get Part of his salary as a Housing Allowance and get tax benefit. Any advice .......................

 

Many Thanks

Abdur