EIM42222 | Employment income: basis of assessment for general earnings: earnings received before an employment starts or after it ends: example of a case where earnings are received after an employment ends

Example

An employee always gets a bonus for each year of assessment three months after the year has ended. He retires on 30 April 2015 and he is paid his 2014 to 2015 bonus of £1,000 when it is due on 5 July 2015. The employee was resident in the United Kingdom in 2014 to 2015 the bonus is taxable in full. It will be assessed in 2015 to 2016, which is the year of receipt. PAYE must be applied on payment.

If it is contended that post-cessation earnings cannot be attributed to a year when the job was held, see EIM40005.