Employment income: basis of assessment for general earnings: assessments made after a change of practice: income to which the change of practice rule applies
Section 709 ITEPA 2003
The special rule in section 709 ITEPA 2003 applies to income that meets both the following conditions. The income:
- was taken into account under PAYE
- was received not less than 12 months before the beginning of the year of assessment in which the assessment or Self Assessment is made (the “assessing year”).
Income that has been taken into account under PAYE includes both payments from which tax has been deducted under PAYE and income that has been coded out for convenience, for example benefits in kind or earnings from a subsidiary employment.