Farmers who provide accommodation to their employees need to make sure that the rates they charge their workers do not push wages below National Minimum Wage or Agricultural Minimum Wage.
If accommodation is provided to workers, the offset rate as provided by HMRC is £6.40 per day or £44.80 per week from April 2017.
If an employer charges the employee more than the offset rate, the difference is taken off the employee’s pay which will lower their wage and it could fall below minimum wage.
If the accommodation is free, the offset rate is added to the employee’s pay increasing their wage.
However, charging below the offset rate will have no effect on the pay.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.