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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: exemption does not apply

The employee’s salary is £14,000 a year.

Benefits from a provided car, car fuel and a beneficial loan total £3,800.

In the year the employer paid £900 for the heating and lighting of job-related living accommodation, which is exempt under Section 99 or 100 ITEPA 2003 (see EIM11331).

The employment income for the year will be:

Salary 14,000
Car and loan benefits 3,800
Total 17,800
Heating and lighting - expense of provision £900 (which is  
less than 10% of £17,800 = £1,780) 900
Employment income 18,700