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HMRC internal manual

Employment Income Manual

Particular benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit: meaning of net amount of the earnings

Section 315 ITEPA 2003

The ‘net amount of the earnings’ for the purpose of the restrictions described at EIM21721 means the total earnings from the employment excluding the expenditure on items 1, 2 and 3 in EIM21721 less:

  • ordinary contributions to an approved superannuation fund
  • capital allowances
  • retirement annuity payments
  • deductions allowed from taxable earnings under Part 5 ITEPA 2003 (EIM31620 onwards) or mileage allowance relief available under section 232 ITEPA 2003.

EIM21723 sets out how to deal with back-pay and when to include earnings from any employment with an associated company.

Examples showing how to calculate the ‘net amount of the earnings’ are listed at EIM21724.