Where PAYE income of an employee is provided in the form of a readily convertible asset and the employer is required to operate PAYE by virtue of Section 696(1) ITEPA 2003, Section 696(2) says that the amount is the income likely to be PAYE income (see EIM11891).
The employer may be unable to calculate the exact amount. If so, PAYE must be operated on the best estimate the employer can reasonably make (see EIM11892).
The amount on which to operate PAYE: specific events
The same principles apply for calculating the amount on which PAYE must be operated where PAYE income of an employee is provided in the form of: