EIM21725 - 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 |