EIM21726 | Particular benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit: example of calculating the net amount of the earnings: exemption does not apply
From HM Revenue & Customs · Employment Income Manual
The employee’s salary is £14,000 a year.
Benefits from a provided car, car fuel and a beneficial loan total £3,800.
In the year, the employer paid £900 for the heating and lighting of job-related living accommodation, which is exempt under section 99 or section 100 ITEPA 2003 (see EIM11331).
The employment income for the year will be:
| Item | Amount |
|---|---|
| Salary | £14,000 |
| Car, car fuel and loan benefits | £3,800 |
| Total | £17,800 |
| Heating and lighting - expense of provision £900 (which is less than 10% of £17,800 = £1,780) | £900 |
| Employment income | £18,700 |