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HMRC internal manual

Employment Income Manual

Employment income: general earnings

Section 7(3) ITEPA 2003

In very many cases, a person’s employment income will consist wholly or mainly of general earnings. General earnings are:

  • earnings as defined in section 62 ITEPA 2003 - this is the principal tax charge on earnings from an office or employment; it normally takes precedence over any other tax charge
  • any amount that is treated as earnings by any other provision of the act.

An employee or office holder who is resident, ordinarily resident and domiciled in the United Kingdom is taxed on the full amount of their general earnings for the tax year (section 15 ITEPA 2003).

If you are dealing with an employee who is not resident, or not ordinarily resident, or not domiciled in the United Kingdom you will have to apply the special rules in Chapter 5 of Part 1 ITEPA 2003 (see EIM40001 onwards).