Section 7(3) and Section 62 ITEPA 2003

The guidance on this page relates solely to earnings within Section 62 ITEPA 2003 (see EIM00515). Different rules apply to amounts that are treated as earnings under the benefits code (see EIM20005 onwards).

An employee may receive something that is clearly a ‘profit’ to them and which is therefore capable of being earnings. For example, most money payments are, potentially, earnings. But a payment will not count as earnings under Section 7(3) and Section 62 ITEPA 2003 if it comes to the employee from a source other than the employment. The fact that the employer or ex-employer paid it is not conclusive that it is taxable as earnings.

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