The employee's salary is £15,000 a year.
The employee is entitled to a deduction of £800 for
expenses within Section 336 ITEPA 2003 (see
EIM31620 onwards).
In the year the employer paid £1,650 for heating,
lighting and internal decorations of the job- related accommodation
(exempt under Section 99 or 100 ITEPA 2003 (see
EIM11331) but the employee reimburses
the employer £350 of this expenditure. So the net cost to the
employer was £1,300 (£1,650 - £350).
The employment income will be:
| £ | |
| Salary | 15,000 |
| less deductible expenses | 800 |
| 14,200 | |
| Heating, lighting and internal decorations: | |
| 10 per cent of £14,200 = 1,420, less “made good” £350 = £1070 | |
| £1,070 is less than the net cost of £1,300 | 1,070 |
| Employment Income | 15,270 |
