Residual perquisite valuation uses employer cost at arm's length minus employee contribution for uncategorised benefits. Residual perquisites are valued where an employer provides any benefit, amenity, service, right or privilege to an employee that is not covered by a specific rule. The perquisite value is the cost to the employer under an arm's length transaction less any employee contribution. Under the earlier rule, the same valuation principle applied, with an express exclusion for telephone and mobile phone expenses incurred by the employer on behalf of the employee.