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HMRC internal manual

Employment Income Manual

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

The employee’s salary is £10,000 a year.

Benefits from a provided car, car fuel and a beneficial loan total £3,500.

In the year, the employer paid £1,700 for the heating, lighting and internal decoration of the job- related living accommodation. This accommodation is exempt under the provisions of Section 99 or 100 ITEPA 2003 (see EIM11331).

The employment income for the year will be:

Item Amount
Salary £10,000
Car, car fuel and loan benefits £3,500
Total £13,500
Heating, lighting and internal decoration 10% of £13,500 = £1,350 (which is less than the cost of £1,700) £1,350
Employment income £14,850