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HMRC internal manual

Employment Income Manual

Termination payments and benefits: section 401 ITEPA 2003: £30,000 threshold: payments and benefits received on or after 6 April 1998

Section 404(5) ITEPA 2003

EIM13515 explains that section 403(1) ITEPA 2003 provides a £30,000 threshold for payments and benefits which are chargeable to tax as specific employment income. The £30,000 threshold is applied in the following order:

  • first, against cash benefits as they are received in the year
  • second, against the aggregate of non-cash benefits at the end of the year (this can be relevant to an employer considering whether the PAYE Regulations apply to a payment)

See example EIM13955.