Board and lodging 108-05040000

This document outlines information relating to board and lodging.

Definition of board and lodging

Boarding and lodging describes accommodation in either a private home or other shared accommodation, which includes meals. It includes 'bed and breakfast', where the only meal provided is breakfast, or 'full board and lodging' where breakfast and at least one other meal are provided. 'Lodging only' describes accommodation, either in a private home or other shared accommodation, without the provision of any meals.

Income from board and lodgings

If a customer receives income in return for provision of board and/or lodging in the customer's principal home, only a proportion of the income is assessed, depending on whether the customer is providing lodging only, bed and breakfast, or full board and lodging. This amount may be further reduced if the customer is paying rent or paying off a mortgage on their home.

Employer provides board and lodging

If an employer provides board and lodging, and the employee receives a reduced wage, the reduced amount is assessable, that is, the gross wage less a deduction for any board and lodging taken out. The employer must provide written advice that there is a deduction from wages to meet the cost of the board and lodging. If the employer reduces the wage to meet rent costs paid to a third party, the entire wage is assessed as income.

Customer running a boarding house

If the customer is running a boarding house (for example, more than 5 rooms to let) and considers it to be a commercial venture, they are considered to be running a business and should be issued with a Business Details form (MOD F).

Free board and lodging

If the customer is receiving free board and lodging, this is generally not assessed as income (with the exception of Special Benefit (SpB) recipients).

Special Benefit recipients receiving free board and lodging will have a reduced rate of payment. For these customers, free board and lodging is taken into account when determining the rate of payment of Special Benefit.

The Resources page contains a link to the Business Details (MOD F).

Income from boarders and lodgers

Operational Information