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The provision of meals or of board and lodging by the employer is common in certain employments, eg, by hospitals, schools and employers of domestic servants. This does not normally give rise to an amount being treated as earnings, not being convertible into money or money's worth (following the general principle as expressed in Tennant v Smith¹). However, a cash allowance in lieu thereof would: see, for instance, Sanderson v Durbidge² where the cost of evening meals, when the employee had to work in the evenings, was disallowed (see also EIM01530). Instead such benefits would fall to be treated as earnings under the benefits code (see E4.660). Note that there is a statutory exemption in relation to staff canteens³.

As to the charge to tax on earnings on the benefit of certain accommodation provided for an employee by his employer, see E4.610.

For commentary on a concession relating to free board and lodging provided to agricultural workers, see E4.1186.

As to the exemption from tax of allowances to Crown servants abroad, see E4.324