Utilities 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:

  • Utilities provided in accommodation
  • Introduction
  • Utilities
  • Reporting requirements


The payment of an employee’s utilities by the employer is most usually linked to the provision of living accommodation to the employee.

Payments in respect of utilities made by an employer may or may not be exempt in certain circumstances.

For these purposes utilities includes water and sewerage charges. For consideration of gas and electricity payments, please see the Heating / lighting provided in accommodation guidance note.


Whether or not the payment of utility bills on behalf of the employee constitutes a taxable benefit depends on why the amounts have been paid.

If the payment of utility bills does not fall into one of the exemptions below then the full amount is taxable. Refer to the Reporting requirements section in order to understand how it should be reported and taxed.

When is the payment of utility bills no

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