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HMRC internal manual

Employment Income Manual

Employment income: general earnings: amounts treated as earnings

Section 7(5) ITEPA 2003

The following tables list the things that are treated as earnings, and which therefore count as general earnings for tax purposes (see EIM00511). There are two tables.

Table 1 - The benefits code - note that for the 2015/2016 and earlier some of the provisions listed in the benefits code do not apply to people in lower paid employment. Those provisions are identified in the table. EIM20101 tells you how to work out if a person is in lower paid employment.

Table 2 - Other provisions - apart from Section 223 ITEPA 2003, which is a director-only provision, these provisions all apply to all employees and office holders, whatever their rate of pay.

Table 1 - The benefits code

Type of income Statutory provision Does it apply to lower paid employees? Guidance
Expenses payments Sections 70 to 72 ITEPA 2003 No EIM20600
Cash vouchers Sections 73 to 81 ITEPA 2003 Yes EIM16020
Non-cash vouchers Sections 82 to 89 ITEPA 2003 Yes EIM16020
Credit tokens Sections 90 to 94 ITEPA 2003 Yes EIM16020
Living accommodation Sections 97 to 113 ITEPA 2003 Yes EIM11300
Cars benefits Sections 120 to 148 ITEPA 2003 No EIM23000
Car fuel Sections 149 to 153 ITEPA 2003 No EIM25550
Vans Sections 154 to 166 ITEPA 2003 No EIM22700
Loans (cheap or interest-free) Sections 173 to 187 ITEPA 2003 No EIM26100
Loans written off Sections 188 to 191 ITEPA 2003 see EIM01490 EIM01490 and EIM26116
Notional loans in respect of acquisition of shares Sections 192 to 197 ITEPA 2003 No Share Schemes Manual
Disposal of shares for more than market value Sections 198 to 200 ITEPA 2003 No Share Schemes Manual
Scholarship for member of employee’s family or household Sections 211 to 215 ITEPA 2003 No EIM30000
Other benefits and facilities Sections 201 to 210 ITEPA 2003 No EIM20001

Table 2 - Other provisions

Type of income Statutory provisions Guidance
Income of agency workers Sections 44 to 47 ITEPA 2003 Employment Status Manual
Workers providing services through intermediaries (the “IR35” provisions) Sections 48 to 61 ITEPA 2003 Employment Status Manual
Sick pay and injury pay Section 221 ITEPA 2003 EIM06400
Payments by employers on account of tax where deduction not possible (e.g. on non-cash remuneration) Section 222 ITEPA 2003 EIM11950
Payment of director’s tax Section 223 ITEPA 2003 EIM21790
Payments to non-approved personal pension arrangements Section 224 ITEPA 2003 EIM01570
Payments for restrictive undertakings Sections 225 and 226 ITEPA 2003 EIM03600
Capital allowance balancing charges Section 262 CAA 2001 EIM36670