Income Tax: cancelled, moved or curtailed shifts
This tax information and impact note confirms that payments received for cancelled, moved or curtailed shifts are earnings and subject to income tax.
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This measure will put beyond doubt the tax treatment of sums received as a result of the new entitlement brought in by section 27BP of the Employment Rights Act 1996. This mandates that employees that have their shifts cancelled, moved or curtailed at short notice are entitled to receive payment.
The measure will also put beyond doubt whether earnings for duties not performed should be treated as UK earnings or overseas earnings, make consequential amendments for foreign employment relief (commonly known as overseas workday relief), and prevent double relief from being available for non-UK residents on post employment notice pay (PENP).