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:
|
£ |
|
| Salary | 10,000 |
| Car and loan benefits | 3,500 |
| 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 |
