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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Particular benefits: supplies and services provided other than on the employer's premises: introduction

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. 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).

This exemption 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)
  • computer equipment, (for computer equipment made available prior to 6 April 2006 see EIM21700), and in certain circumstances internet connection (see EIM21617), and mobile phones (see EIM 21778 -21781 for guidance about mobile phones made available for private use).

Some benefits are excluded from the possibility of exemption, see EIM21612.

See EIM21610 about work related supplies and services provided to employees on the employer’s premises.