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HMRC internal manual

Employment Income Manual

The benefits code: meaning of

Section 216(3)(b) ITEPA 2003

Non-profit making company

For the purposes of deciding whether or not a director’s employment is an excluded employment (for 2015/16 and earlier) (EIM20007), a non-profit making company (EIM20201) is one:

  • which does not carry on a trade and
  • whose functions do not consist wholly or mainly in the holding of investments or other property.

The mere fact that the company does not make a profit does not mean that it is non-profit making for the purposes of this test.