EIM21727 - Particular benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit: example of calculating the net amount of the earnings: employee makes good part of the expense of providing the benefits
The employee鈥檚 salary is 拢15,000 a year.
The employee is entitled to a deduction of 拢800 for expenses within section 336 ITEPA 2003 (see EIM31620 onwards).
In the year, the employer paid 拢1,650 for heating, lighting and internal decorations of the job-related accommodation (exempt under section 99 or section 100 ITEPA 2003 (see EIM11331) but the employee reimburses the employer 拢350 of this expenditure. So the net cost to the employer was 拢1,300 (拢1,650 鈭� 拢350).
The employment income will be:
| Item | Amount |
|---|---|
| Salary | 拢15,000 |
| less deductible expenses | 拢800 |
| Total | 拢14,200 |
| Heating, lighting and internal decorations: (拢14,200 脳 10%) 鈭� 拢350 (鈥渕ade good鈥�) = 拢1,070 - 拢1,070 is less than the net cost of 拢1,300 | 拢1,070 |
| Employment income | 拢15,270 |