HMRC explains on EIM 50605ff. how certain construction and civil engineering employees can receive travel and accommodation allowances under standard work arrangements without tax being deducted under PAYE. Working arrangements are developed between employers` associations and trade unions and set the working conditions of many workers in construction and related sectors. Working methods are used in the construction industry and in similar fields. These are national agreements between unions and employers across the country that set out the conditions that apply to certain categories of hourly workers. The employees concerned are generally those whose work takes place in different locations and not on the employer`s premises. The agreements provide details on what workers need to be paid in terms of commuting and subsistence, night pay, etc., in order to give workers certainty about what to expect from their employers. However, in the absence of further guidance from HMRC, the tax situation of the amounts covered by the agreements would remain uncertain. Indeed, the rules on the deductibility of travel and living expenses vary according to the length of time the employee works at a particular location and the fact that the Joint Construction Industry Council (CIJC) Labour Rules Agreement is the largest agreement of its kind in the construction industry, covering more than 500,000 workers. The 500,000 workers are subject to the minimum wage rates set out in the agreement, and most fall under the entire agreement, which includes, among other things, travel expenses and fares. Such agreements can help avoid labour disputes and simplify the process of negotiating terms between a very large number of different employers and employees. In addition, expenses such as travel and accommodation expenses paid to employees under a WRA are not considered income for tax purposes. Civil Engineering Procedure, 7th Edition, published by the Institution of Civil Engineers (ICE), defines an Agreement on Labour Rules (WRA) as: The Agreement on Labour Rules is concluded between employers` representatives and trade unions in the construction industry and sets the agreed wage rates between the different levels of apprenticeship and craftsmanship, and social rights and benefits….