EIM21619 | Particular benefits: payment or reimbursement of expenses for accommodation, supplies and services

Section 316ZA ITEPA 2003

This section applies to payments or reimbursements made on or after 6 April 2026.

Section 316ZA applies where an employee incurs a cost on behalf of the employer in respect of accommodation, supplies or services, and the employer pays or reimburses the expenses.

The exemption is available only if Condition A is met, and Condition B must also be met if the provision is otherwise than on premises occupied by the employer.

Where the employer provides the accommodation, supplies or services directly, the rules in section 316 apply instead (see EIM21610 onwards).

Condition A – employer’s intention

Condition A is that, when the accommodation, supplies or services are first provided, the employer intends that:

• they will be used by the employee in performing the duties of the employment, and

• any use for the employee's private purposes, or the private purposes of members of the employee's family or household, will not be significant (see EIM21613).

Condition B – provision made other than on employer premises

Condition B applies only where the accommodation, supplies or services are provided other than on premises occupied by the employer. In these cases the exemption under section 316ZA does not apply unless:

• the sole purpose of the provision is to enable the employee to perform the duties of the employment (see EIM21614), and

• what is provided is not an excluded benefit (see EIM21612).