SolvedEIM21611 | Particular benefits: supplies and services provided other than on the employer's premises: introduction
From HM Revenue & Customs · Employment Income Manual
Section 316 ITEPA 2003
There is no tax charge on the expense that an employer incurs in providing directors and employees with supplies and services that:
are provided other than on the employer's premises (e.g. for employees who work at home or whilst travelling), and
are provided for the sole purpose (see EIM21614) of enabling the employee to perform the duties of the employment 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 other than on the employer’s premises, and
the item is provided for the sole purpose (see EIM21614) of enabling the employee to perform the duties of the employment, 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), and
the item is not an excluded benefit (see EIM21612).
These exemptions may cover the provision to employees of supplies and services such as for example:
office furniture and equipment such as desks, filing cabinets, fax machines etc
stationery and normal office or workshop materials and supplies
home telephone lines in some circumstances (see EIM21615)
Some benefits are excluded from the possibility of these exemptions, see EIM21612.
See EIM21610 about work related supplies and services provided to employees on the employer's premises.
There is no tax charge when the equipment is returned to the employer as long as there is no transfer of ownership. If ownership of the equipment is transferred to the employee, at any time, this will become an employee benefit. See EIM21640 for a general outline of assets transferred to a director or employee and EIM21645 for when these rules apply.