Heating / lighting provided in accommodation

By Tolley in association with Philip Rutherford

The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Heating / lighting provided in accommodation
  • Introduction
  • Heating / lighting
  • Reporting requirements


The payment of an employee’s heating and lighting by the employer is most usually linked to the provision of living accommodation to the employee. The tax treatment of the provision of gas and electricity are covered by this guidance note.

Payments in respect of gas and electricity made by an employer are always taxable. However, the answers to how and why the benefit is provided to the employee determine both the amount of the benefit and how it should be reported.

For consideration of other utility charges, such as water charges, please see the Utilities provided in accommodation guidance note.

Heating / lighting
Accommodation provided by employer

If living accommodation is provided by the employer then the value of the taxable benefit depends on whether the accommodation falls within an exemption from tax or not.

If the living accommoda

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