Particular issues: receipts basis
Paragraph 10(5) Schedule 12 Finance Act 2000/Section 55(5) ITEPA 2003
Regulation 4(4) SI 2000 No. 727
The income brought into account at Steps One and Two of the deemed payment calculation is based upon the amount received in the tax year.
The definition of “received” is narrower than under the normal Employment Income rules, see EIM42210. This is to exclude money where an invoice has been sent and the amount in question has not been received because the client is a slow payer.