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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Particular benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit: list of examples of calculating the net amount of the earnings

The links below are to examples showing how to calculate the amount to be included as taxable benefits in respect of:

  • heating, lighting and cleaning the premises
  • repairs to the premises, their maintenance or decoration
  • the provision of furniture, equipment or other items which are normal for domestic occupation

where the restriction to 10 per cent of net earnings described in EIM21721 to EIM21723 could apply.

All the employees in the examples are provided with job-related living accommodation by reason of their employment and qualify for exemption under Section 99 and Section 100 ITEPA 2003 (see EIM11331 onwards).

EIM21725 Example of the 10% restriction applying.
EIM21726 Example of the 10% restriction not applying.
EIM21727 Example where the employee makes good some (see EIM21120) of the expense of providing the benefits.
EIM21728 Example showing the interaction between the 10% restriction and the calculation (see EIM20101) of the amount of earnings to determine whether, for 2015/16 and earlier only, the employee is in lower-paid employment.