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HMRC internal manual

Employment Income Manual

The benefits code: which directors and employees are chargeable?

Section 216 ITEPA 2003

This section only applies for 2015/16 and earlier.

The complete benefits code (EIM20007) applies to most directors and employees, but where an employment is an excluded employment (EIM20007) only part of the benefits code is relevant.

The complete benefits code can only apply to an individual who is in:

  • employment with earnings of at least £8,500 a year (EIM20105 onwards) or
  • employment as a director of a company, with certain exceptions (EIM20200 onwards).

Note that an employment is within the special rules if its earnings are at least £8,500 a year, whether or not it is employment as a director.

In some cases it will be necessary to calculate the rate of earnings from the employment, in order to determine whether or not the employment has earnings of at least £8,500 (EIM20101).