SE21601 - Particular benefits: accommodation, supplies and services on the employer's premises

Section 155(ZA) ICTA 1988

There is no tax charge on the expense which an employer incurs in providing directors and employees within Part V Chapter II ICTA 1988 with accommodation, supplies and services which:

• are provided on the employer's premises and
• which the individual uses in performing the duties of the employment, and any use for the employee’s private purposes ( SE21604) is not significant ( SE21605).

This exemption covers the provision of

• ordinary office or workshop accommodation
• office furniture and equipment such as desks, workbenches, tools, telephones etc
• typists and messengers
• stationery and normal office or workshop materials and supplies.

The exemption does not cover living accommodation provided for the employee ( SE11301 onwards).

See SE21602 about work related supplies and services provided to an employee other than on the employer’s premises, for instance equipment and stationery provided to an employee who works at home.