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HMRC internal manual

Employment Income Manual

The benefits code: amounts treated as earnings and how these rules interact with the charge on earnings in Section 62 ITEPA 2003

Section 7(5) ITEPA 2003

Income which an individual receives from an office or employment is charged to tax as “employment income” (EIM00510). Employment income consists of:

“General earnings” are usually the main part of a person’s employment income for tax purposes and these are:

  • earnings within Section 62 ITEPA 2003 (EIM00515) and
  • any other amount treated as earnings (Section 7(5) ITEPA2003).

Amounts treated as earnings include

  • “the benefits code” (Section 63 ITEPA 2003) and
  • other provisions (see EIM00513).

The guidance that follows is concerned with the benefits code (EIM20006).