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HMRC internal manual

Employment Income Manual

PAYE: special types of payment: notional payments: employee’s requirement to make good PAYE

Section 222 ITEPA 2003

Section 222 ITEPA 2003 is concerned only with the tax that the employer is required to account for to HMRC in accordance with Section 710(4) ITEPA 2003 (see EIM11950). If section 222 applies, the amount that is chargeable to tax is employment income of the employee.

Section 222 may be applicable in many scenarios but the two most common areas where a charge may arise will be in cases where either employee share arrangements or avoidance schemes have been used. There are issues concerning the concepts of the due amount (see EIM11968), the definition of making good (see EIM11964) and the relevant date (see EIM11970).