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HMRC internal manual

Employment Income Manual

The benefits code: directors excluded

Section 216(2) and (3) ITEPA 2003

This section only applies to 2015/16 and earlier.

The full benefits code (EIM20006) applies to most directors, except if the employment is an excluded employment (EIM20007).

Director’s employment excluded from the benefits code

A director’s employment is deemed to be an excluded employment if the following conditions are satisfied:

  • the earnings are less than £8,500 a year (EIM20101 onwards) and
  • the director is either
    • a full-time working director of the company (EIM20202 to EIM20203) or
    • employed by a non-profit-making company or one established for charitable purposes only (EIM20210) and
  • the director does not have a material interest in the company (EIM20212) and
  • any other employment the director holds with employers under the same control also satisfies the three previous conditions.

“Control” has the meaning given to it by Section 69 ITEPA 2003 (EIM20213).