Working Rule Agreements + Temp Workplace rules

How do Working Rule Agreements (WRA) interact with the temporary workplace rules?

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This is not my wheelhouse, but a client's day job is in construction (I am helping with his "side hustle").


I stumbled across Working Rule Agreements (WRA) in an article ( and HMRC manual ( They seem to suggest these WRA payments are tax exempt, but it is not clear for how long.


The context is he receives a "lodge" payment to cover his accommodation, which is grossed up for taxes, but that will take him above £100k and he will lose free childcare, which has not been factored in. It would be great if we can agree with the employer these payments should be ignored. 


My question is do they have the same limit as the normal temporary workplace rules, i.e. 24 months, or do they supersede these and apply for as long as you are on one of these jobs?


Would be great if anyone has experience of these, or even to be directed to someone who might know.    

Replies (6)

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By FactChecker
22nd May 2024 22:44

I'm not clear as to what you're actually asking when you say "It would be great if we can agree with the employer these payments should be ignored" ...

* Do you mean can ER be asked to stop making payments that are intended to cover accommodation (as that will prevent him losing "free childcare")?
* Or do you mean can ER be asked to continue the payments but cease grossing them up for taxes?

BTW 'free childcare' is I presume a misnomer for Child Benefit (which will be reducing, or rather incurring HICBC, well before gross earnings reach £100k p.a.)

Thanks (2)
Replying to FactChecker:
By FactChecker
22nd May 2024 22:54

* According to OP's first supplied URL:
- Accommodation Allowance is tax-free (subject to circumstances approved and periodically reviewed by HMRC) - so it's not clear why ER is grossing them up, but ...

* According to OP's second supplied URL:
- Accommodation Allowances are payable free of tax only if the operative has completed an application form. If an employer is not in possession of a completed application form, it should tax any accommodation allowances paid under a working rule agreement.

Is this the heart of the problem here?

Thanks (2)
Replying to FactChecker:
By Tax Dragon
23rd May 2024 06:01

Start at EIM71300. The contents page is EIM70199 (scroll down). Numbers are at 71320.

Not child benefit - the government contribution to child care costs is conditional.

Thanks (1)
Replying to Tax Dragon:
By FactChecker
23rd May 2024 13:42

Exemplary navigation guidance (i.e. even I managed to get straight there without turning down all the available side-streets), so many thanks.

Let's hope OP, or at least his side-hustle client, knows which of those Agreements are pertinent to their situation.

It would be nice if OP broke his silence and made clear the points I raised earlier.

Thanks (2)
Replying to FactChecker:
By Davemaverick
27th May 2024 07:59

Thanks both.

To answer the questions, the point I was making re ignoring payments was that it should be ignored for the purpose of income tax/PAYE. We still want the client to receive them (unless economically it would leave them worse off) and the gross-up is technically correct (and the employer making good the client for taxes).

And as Tax Dragon points out, it is not a misnomer - free childcare disappears at £100k net adjusted income (

I believe the client would be covered by Engineering Construction Industry (EIM71330) which more or less equates to the monthly payment added to his payslip (then grossed-up for tax).

Re the forms, the employer (which is a large construction business) is not recognising the "forms" here and essentially is saying they do not qualify for any exemption because of the 24-month rules for temporary workplaces. Which is why I want to check if the WRA rules supersede the temp workplace rules, and that is main thing I still want to understand. Would be easier to go back to their payroll/HR person armed with that knowledge and they are ignoring all the stuff I have sent so far. The main issue is they don't see the issue as they think they have already "made good" the client by grossing-up for tax.

Thanks (0)
Replying to Davemaverick:
By Tax Dragon
27th May 2024 10:32

I don't believe WRA can apply in relation to somewhere that is [one of] your permanent workplace[s].

Thanks (2)