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鈥檚 salary is 拢10,000 a year.
Benefits from a provided car, car fuel and a beneficial loan total 拢3,500.
In the year, the employer paid 拢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 | 拢10,000 |
| Car, car fuel and loan benefits | 拢3,500 |
| Total | 拢13,500 |
| Heating, lighting and internal decoration 10% of 拢13,500 = 拢1,350 (which is less than the cost of 拢1,700) | 拢1,350 |
| Employment income | 拢14,850 |