EIM21610 | Particular benefits: accommodation, supplies and services on the employer's premises

Section 316 ITEPA 2003

There is no tax charge on the expense that an employer incurs in providing directors and employees (except for 2015/16 and earlier those in an excluded employment (see EIM20007)), with accommodation, supplies and services that:

• are provided on the employer's premises and

• that the individual uses in performing the duties of the employment, and

• any use for the employee's private purposes is not significant (see EIM21613).

Section 316ZA ITEPA 2003

From 6 April 2026, a parallel exemption in Section 316ZA applies (see EIM21619) where the employer does not provide the accommodation, supplies or services directly, but instead the employee incurs the cost on behalf of the employer, and the employer pays or reimburses the expenses.

Section 316ZA applies where:

• the employee incurs expenditure on accommodation, supplies or services, and

• the employee incurs the expenditure on the employer’s behalf, and

• the item is provided on the employer’s premises, and

• the employer intends that the item will be used in performing the duties of the employment, and

• the employer intends that any private use will not be significant (see EIM21613).

These exemptions cover the provision of:

• ordinary office or workshop accommodation

• office furniture and equipment such as desks, computers, workbenches, tools, telephones etc

• typists and messengers

• stationery and normal office or workshop materials and supplies.

These exemptions do not cover living accommodation provided for the employee (see EIM11301 onwards).

See EIM21611 about work related supplies and services provided to an employee other than on the employer's premises, for instance equipment and stationery provided to an employee who works at home.