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HMRC internal manual

Employment Income Manual

PAYE: meaning of readily convertible assets: money debt

Section 702(1)(b)(i) ITEPA 2003When an employer assigns rights over a money debt to an employee the employer provides a readily convertible asset and must operate PAYE.

A money debt includes an obligation that may be settled by payment of money. It covers all trade debts, as well as other money debts, such as debentures.