The fringe benefit to be included in gross income is calculated in the following different ways, depending on the circumstances:

• Using a formula less the amount paid by the employee
• Using the lower of a formula or the cost borne by the employer less the amount paid by the employee
• When holiday accommodation has been provided, the fringe benefit will be the cost borne by the employer if the accommodation has been hired. Where the property is owned by the employer the fringe benefit will be the prevailing market rate per day at which the accommodation could normally be let.