EIM00513 | Employment income: general earnings: amounts treated as earnings
From HM Revenue & Customs · Employment Income Manual
Section 7(5) ITEPA 2003
The following tables list the things that are treated as earnings, and which therefore count as general earnings for tax purposes (see EIM00511). There are two tables.
Table 1 - The benefits code - note that for the tax year 2015 to2016 and earlier some of the provisions listed in the benefits code do not apply to people in lower paid employment. Those provisions are identified in the table. EIM20101 tells you how to work out if a person is in lower paid employment.
Table 2 - Other provisions - apart from section 223 ITEPA 2003, which is a director-only provision, these provisions all apply to all employees and office holders, whatever their rate of pay.
Table 1 - The benefits code
| Type of income | Statutory provision | Does it apply to lower paid employees? | Guidance |
|---|---|---|---|
| Expenses payments | Sections 70 to 72 ITEPA 2003 | No | EIM20600 |
| Cash vouchers | Sections 73 to 81 ITEPA 2003 | Yes | EIM16020 |
| Non-cash vouchers | Sections 82 to 89 ITEPA 2003 | Yes | EIM16020 |
| Credit tokens | Sections 90 to 94 ITEPA 2003 | Yes | EIM16020 |
| Living accommodation | Sections 97 to 113 ITEPA 2003 | Yes | EIM11300 |
| Cars benefits | Sections 120 to 148 ITEPA 2003 | No | EIM23000 |
| Car fuel | Sections 149 to 153 ITEPA 2003 | No | EIM25550 |
| Vans | Sections 154 to 166 ITEPA 2003 | No | EIM22700 |
| Loans (cheap or interest-free) | Sections 173 to 187 ITEPA 2003 | No | EIM26100 |
| Loans written off | Sections 188 to 191 ITEPA 2003 | see EIM01490 | EIM01490 and EIM26116 |
| Notional loans in respect of acquisition of shares | Section 446Q ITEPA 2003 | No | ERSM70100 |
| Disposal of shares for more than market value | Section 446X ITEPA 2003 | No | ERSM80000 |
| Scholarship for member of employee’s family or household | Sections 211 to 215 ITEPA 2003 | No | EIM30000 |
| Other benefits and facilities | Sections 201 to 210 ITEPA 2003 | No | EIM20001 |
Table 2 - Other provisions
| Type of income | Statutory provisions | Guidance |
|---|---|---|
| Income of agency workers | Sections 44 to 47 ITEPA 2003 | Employment Status Manual |
| Workers providing services through intermediaries to small clients (the “IR35” provisions) | Sections 48 to 61 ITEPA 2003 | Employment Status Manual |
| Managed Service Companies | Sections 61A to 61J ITEPA 2003 | Employment Status Manual |
| Workers’ services provided through intermediaries to public authorities or medium or large clients (the “IR35” provisions) | Sections 61K to 61X ITEPA 2003 | Employment Status Manual |
| Sick pay and injury pay | Section 221 ITEPA 2003 | EIM06400 |
| Payments by employers on account of tax where deduction not possible (e.g. on non-cash remuneration) | Section 222 ITEPA 2003 | EIM11950 |
| Payment of director’s tax | Section 223 ITEPA 2003 | EIM21790 |
| Payments to non-approved personal pension arrangements | Section 224 ITEPA 2003 | EIM01570 |
| Payments for restrictive undertakings | Sections 225 and 226 ITEPA 2003 | EIM03600 |
| Capital allowance balancing charges | Section 262 CAA 2001 | EIM36670 |