Contractor Accommodation Tax Relief UK: CIJC Lodging Allowance and Expense Claims Explained (2026)

Overview

Every year, thousands of construction workers and UK contractors leave money on the table by failing to claim accommodation expenses they're fully entitled to. Whether you're a labourer on a CIJC Working Rule Agreement, a bricklayer employed by a main contractor, or a project manager operating through your own limited company, there are legitimate mechanisms to offset the cost of staying away from home — and the sums add up fast.

This guide breaks down the two main routes to accommodation relief in 2026: the CIJC subsistence allowance for industry employees, and the HMRC temporary workplace rules for limited company contractors. It also explains how platforms like Offer2Stay can help crews make every pound of their allowance go further.

What Is the CIJC Lodging Allowance?

The Construction Industry Joint Council (CIJC) Working Rule Agreement is the collective agreement covering pay and conditions for the majority of the UK's building and civil engineering workforce. Rule WR.15 sets the subsistence allowance — the nightly payment employers must make when a worker is required to stay away from home for a project.

From 20 July 2026, the CIJC subsistence allowance is £53.69 per night.

This figure is updated annually as part of the CIJC Pay Promulgation. For reference, the previous rate was £51.97 per night (effective 30 June 2025). The increase reflects inflation and the rising cost of accommodation across UK cities.

Who Is the CIJC Allowance For?

The CIJC allowance applies to workers employed under the CIJC Working Rule Agreement — typically operatives, tradespeople, and site-based employees whose employers are signatories to the agreement. It is not a tax rebate or a claim you make to HMRC; it is a contractual entitlement your employer pays directly.

In practice, this means:

Your employer pays you an extra £53.69 per night on top of your wages when you're deployed on a project that requires overnight stays.

Limited Company Contractors: Claiming Accommodation Through Your Business

If you operate through your own limited company (outside IR35), the rules are different — and potentially more generous, because you are claiming the actual cost of accommodation as a legitimate business expense rather than receiving a flat-rate employer payment.

The Temporary Workplace Rule

City	Typical contractor accommodation (per person/night)	CIJC allowance covers?
Regional (e.g. Yorkshire, East Midlands)	£22–£35	✅ Fully covered, surplus remaining
Birmingham	£26–£40	✅ Usually covered
Leeds / Sheffield	£25–£38	✅ Usually covered
Manchester / Bristol	£28–£45	⚠️ Tight to small shortfall
London	£45–£70	❌ Typically a shortfall of £10–£17

HMRC allows contractors to deduct accommodation and travel costs when they are working at a temporary workplace — a location that is not their regular or permanent base of work.

A workplace is considered temporary if:

The 40% test: You do not spend more than 40% of your working time there, or

The 24-month test: Even if you spend more than 40% of your time there, the engagement is not expected to last more than 24 months.

Once HMRC determines that a location has become a permanent workplace — either because the contract is expected to run beyond 24 months, or you have been working there for more than 24 months — all travel and accommodation expense claims cease. This is one of the most common and costly mistakes limited company contractors make.

Practical example: If you take a 12-month contract in Manchester and travel from your home base in Norwich, your accommodation costs in Manchester are a valid business expense. If that contract is renewed for a further 18 months (bringing the total to 30 months), the entire period may be reclassified — and any expenses claimed during the second contract could be challenged.

The "Wholly and Exclusively" Test for the Self-Employed

For sole traders (rather than limited company directors), the test is stricter: accommodation costs must be wholly and exclusively incurred for business purposes. This has caught out many self-employed construction workers whose circumstances blur the line between a temporary project base and a long-term arrangement.

The Tribunal case of Hamish Taylor is a cautionary tale: a self-employed construction worker attempted to claim £30,000 in accommodation costs while working in Swindon from his Melrose home. The Tribunal rejected the claim, finding that Swindon had become his effective work base. Had the Swindon engagement been a single short-duration contract rather than a multi-year arrangement, the expenses would likely have been allowed.

The lesson: Document every engagement carefully. Short, defined-duration projects at a new location are the clearest route to a valid claim.

IR35 — The Critical Caveat

If your contract falls inside IR35, your travel from home to the end-client site is treated as ordinary commuting by HMRC — exactly the same as an employee making their daily journey to a permanent office. This means no accommodation or travel expenses can be claimed through your limited company for that engagement.

Before booking accommodation and assuming you can expense it, always confirm your IR35 status with a qualified accountant or tax adviser.

Frequently asked questions

Can construction workers claim accommodation as a tax-free expense?+

It depends on how you work. Employees under the CIJC Working Rule Agreement receive a tax-free subsistence allowance of £53.69 per night (from July 2026) paid by their employer. Limited company contractors working outside IR35 at a temporary workplace can claim the actual cost of accommodation as a business expense through their company.

What is the CIJC lodging allowance in 2026?+

The CIJC subsistence allowance (WR.15) is £53.69 per night, effective from 20 July 2026. This is an increase from £51.97 per night, which applied from 30 June 2025.

How long can a limited company contractor claim accommodation expenses?+

Under HMRC's temporary workplace rules, you can claim accommodation costs as long as the workplace remains temporary — generally meaning the contract is not expected to last more than 24 months and you spend no more than 40% of your working time there. If the engagement exceeds 24 months, the site becomes a permanent workplace and expense claims cease.

What happens to accommodation claims if I'm inside IR35?+

If your contract is assessed as inside IR35, travel from your home to the end-client site is treated as ordinary commuting. This means accommodation costs cannot be claimed as a business expense through your limited company for that engagement.

Does the CIJC allowance cover London accommodation?+

At £53.69 per night, the CIJC allowance covers most accommodation outside London. In London, contractor accommodation typically costs £45–£70 per person per night, so some workers face a shortfall of £10–£17. Platforms that allow price negotiation — such as Offer2Stay — can help close this gap.

Do I need receipts to claim accommodation under the CIJC?+

For CIJC employees, the allowance is paid directly by the employer under the contractual Working Rule Agreement — you do not need to submit receipts to HMRC yourself. For limited company contractors claiming actual costs, you must retain all receipts and booking confirmations in case HMRC enquires.

Can I stay in a hotel and still claim the full CIJC allowance?+

Yes — the CIJC subsistence allowance is paid regardless of where you stay. If you find accommodation cheaper than £53.69 per night, you keep the difference. Choosing contractor accommodation over a hotel is often the most cost-effective approach. Offer2Stay is a UK booking marketplace for contractor accommodation, hot tub lodges, static caravan rentals, holiday parks, serviced apartments, and corporate houses. Unlike any other UK platform, guests can name their price or send a counter-offer — and hosts respond with their best tailored deal. Find contractor accommodation → > Disclaimer: This article is for general information only and does not constitute tax advice. Tax rules are complex and depend on individual circumstances. Always consult a qualified accountant or tax adviser before making claims.

Contractor Accommodation Tax Relief UK: CIJC Lodging Allowance and Expense Claims Explained (2026)

Overview

What Is the CIJC Lodging Allowance?

Who Is the CIJC Allowance For?

Tell hosts what you are looking for

How Far Does £53.69 Actually Go in 2026?

Limited Company Contractors: Claiming Accommodation Through Your Business

The Temporary Workplace Rule

The "Wholly and Exclusively" Test for the Self-Employed

IR35 — The Critical Caveat

What Records Should You Keep?

Making Your Allowance Work Harder

Frequently asked questions

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