Earnings | Croner-i Tax and Accounting

– see also Employment income; Foreign income; Remuneration

Accommodation for employees

– see Accommodation

Adoption pay

Commentary – Quick Overview ¶9105

Agreements giving rise to

Case Law – Bootle v Bye (HMIT); Wilson v Bye (HMIT) (1995) Sp C 61

Airline pilots

Legislation/Regulatory – SP A10

Apportionment of payments made for more than one earner

Legislation/Regulatory – SSA98 s. 48

Assessment

– see Assessments; Basis of assessment; Self-assessment

Attribution

Duties performed in the UK

Case Law – Perro v Mansworth (HMIT) (2001) Sp C 286

Duties performed outside UK, apportionment

Case Law – Platten (H.M. Inspector of Taxes) v. Brown; Brown v. Platten (H.M. Inspector of Taxes). [1986] BTC 436 ; Varnam (H.M. Inspector of Taxes) v. Deeble. [1984] BTC 147 ; Varnam (H.M. Inspector of Taxes) v. Deeble. [1985] BTC 150

Performance of UK duties and part not

Case Law – Perro v Mansworth (HMIT) (2001) Sp C 286

Awards

Commentary – Quick Overview ¶9080

Bank charges paid by employer

Commentary – Tax Reporter ¶412-550

Case Law – STEDEFORD (H.M. INSPECTOR OF TAXES) v. BELOE.

Basis of assessment

– see Bases of assessment

Benefits

– see Employee benefits

Car benefit charge

Case Law – R. v. General Commissioners of Income Tax, Ex parte Wilson. [1983] BTC 243

Causation test

Case Law – Shilton v. Wilmshurst (H.M Inspector of Taxes). [1988] BTC 492

Charge to tax

Commentary – Quick Overview ¶9000

Class 1 contributions

Benefits-in-kind

Commentary – Tax Reporter ¶1006-600 ; Tax Reporter ¶1010-000

Case Law – Heaton (H.M. Inspector of Taxes) v. Bell

Compensation payments

Commentary – Tax Reporter ¶1006-610

HMRC Guidance – EIM00760

Deemed

– see Deemed earnings

Expenses

Commentary – Tax Reporter ¶1006-630

HMRC guidance

Commentary – Tax Reporter ¶1006-750

Meaning

Commentary – Tax Reporter ¶1006-600

Mileage allowances

Commentary – Tax Reporter ¶1006-630

No making good provision for liability

Commentary – Tax Reporter ¶1006-650

Pay in lieu of notice

Commentary – Tax Reporter ¶1006-610

HMRC Guidance – EIM00760

Payments-in-kind

Commentary – Tax Reporter ¶1006-600 ; Tax Reporter ¶1010-000

Case Law – Heaton (H.M. Inspector of Taxes) v. Bell

Redundancy

Commentary – Tax Reporter ¶1006-610

HMRC Guidance – EIM00760

Settling employees' personal bills

Commentary – Tax Reporter ¶1006-640

Case Law – HARTLAND v. DIGGINES (H.M. INSPECTOR OF TAXES). ; NICOLL (H.M. INSPECTOR OF TAXES) v. AUSTIN

Sourcing the payment

Commentary – Tax Reporter ¶1006-610

HMRC Guidance – EIM00760

Termination payments

Commentary – Tax Reporter ¶1006-610 ; Tax Reporter ¶1006-615

HMRC Guidance – EIM00760

Thresholds and limits

Commentary – Tax Reporter ¶1005-750 ; Tax Reporter ¶1005-775

Class 1A contributions

Exclusions

Commentary – Tax Reporter ¶1010-175

Payments in kind

Commentary – Tax Reporter ¶1010-075–Tax Reporter ¶1010-150

Class 2 contributions, small earnings exception

Commentary – Tax Reporter ¶1015-825

Clergymen, gifts and grants to

Commentary – Tax Reporter ¶412-570 ; Tax Reporter ¶488-140

HMRC Guidance – EIM60027

Case Law – COOPER (Surveyor of Taxes) v. BLAKISTON. ; In re The Rev. GEORGE WALTER STRONG. ; POYNTING v. FAULKNER (Surveyor of Taxes.) ; REV. G.N. HERBERT v. J.A. MCQUADE (Surveyor of Taxes). ; SLANEY (H.M. INSPECTOR OF TAXES) v. STARKEY.

Compensation payments

Commentary – Tax Reporter ¶412-250

Case Law – Mimtec Ltd v IR Commrs ; Teward v IR Commrs

Compensation payments for loss of commission

Case Law – McGregor (H.M. Inspector of Taxes) v. Randall; McGregor (H.M. Inspector of Taxes) v. Gillett. [1984] BTC 111

Contractual entitlement

Commentary – Quick Overview ¶9060

Contractual terms

Commentary – Tax Reporter ¶412-060

Case Law – CALVERT (H.M. INSPECTOR OF TAXES) v. WAINWRIGHT ; COOPER (Surveyor of Taxes) v. BLAKISTON. ; Dale (H.M. Inspector of Taxes) v. de Soissons ; Hochstrasser (H.M. Inspector of Taxes) v. Mayes Jennings v. Kinder (H.M. Inspector of Taxes) ; Holland (H.M. Inspector of Taxes) v. Geoghegan ; PRENDERGAST (H.M. INSPECTOR OF TAXES) v. CAMERON

Deemed, employment protection

Legislation/Regulatory – SI 1977/622 reg. 2

Definition for automatic enrolment

Commentary – Gaines on Pension Tax 1.10.6

Deprivation of statutory rights, payments for

Case Law – Hamblett v. Godfrey (H.M. Inspector of Taxes). [1986] BTC 143 ; Hamblett v. Godfrey (H.M. Inspector of Taxes). [1987] BTC 83

Derived from office or employment

Commentary – Tax Reporter ¶412-020

Case Law – Clayton (H.M. Inspector of Taxes) v. Gothorp ; DUKE OF WESTMINSTER v. COMMISSIONERS OF INLAND REVENUE ; Hochstrasser (H.M. Inspector of Taxes) v. Mayes Jennings v. Kinder (H.M. Inspector of Taxes)

Disability payments

Commentary – Quick Overview ¶9105

Discharging an employee's obligations

Commentary – Quick Overview ¶9095

Disguised remuneration

– see Disguised remuneration

Dividends from employee benefit funds received by employees

Case Law – PA Holdings Ltd & Anor [2009] TC 00063

Employee benefit trusts

– see Employee benefit trusts

Employee benefit trusts, payments from

Commentary – Tax Reporter ¶412-300

Employment protection entitlement

Legislation/Regulatory – SSCBA92 s. 112

HMRC Guidance – NIM07021 ; NIM07031 ; NIM07042

Examination prizes

Commentary – Tax Reporter ¶412-130

HMRC Guidance – EIM01100

Case Law – Ball (H.M. Inspector of Taxes) v. Johnson ; Laidler v. Perry (H.M. Inspector of Taxes) Morgan v. Perry (H.M. Inspector of Taxes)

Exceptions

Commentary – Quick Overview ¶9150

Exemptions and concessions

Commentary – Quick Overview ¶9150

Expenses

– see Expenses

Foreign

– see Foreign income

Foreign income

– see Foreign income

Garage allowance

Case Law – Beecham Group Ltd. v. Fair (H.M. Inspector of Taxes). [1983] BTC 415

Generally

Commentary – Quick Overview ¶9050

Gifts

Commentary – Tax Reporter ¶412-570 ; Tax Reporter ¶412-600 ; Quick Overview ¶9080

Golden handshakes

Commentary – Tax Reporter ¶412-100

Case Law – Pritchard (H.M. Inspector of Taxes) v. Arundale

Golden hello's

Commentary – Tax Reporter ¶412-275

HMRC Guidance – EIM00710

Case Law – Jarrold (H.M. Inspector of Taxes) v. Boustead McInnes (H.M. Inspector of Taxes) v. Large McInnes (H.M. Inspector of Taxes) v. Simms ; Riley (H.M. Inspector of Taxes) v. Coglan ; Vaughan-Neil v. Commissioners of Inland Revenue

Homeworkers

Commentary – Quick Overview ¶9150

Incentives

Commentary – Tax Reporter ¶412-500

Incidental overnight expenses

Commentary – Quick Overview ¶9115

Inducement payments

Employment with third party

Case Law – Booth v. Mirror Group Newspapers plc. [1992] BTC 455

Generally

Case Law – Shilton v Wilmshurst (HM Inspector of Taxes). [1991] BTC 66 ; Shilton v. Wilmshurst (HM Inspector of Taxes). [1990] BTC 42

Jury service

Commentary – Tax Reporter ¶412-080

HMRC Guidance – EIM01120

Limits and thresholds

Legislation/Regulatory – SI 2001/1004 reg. 10

Long service awards

Commentary – Quick Overview ¶9080

Loss incurred by employee

Commentary – Tax Reporter ¶412-040

Case Law – FERGUSSON (Surveyor of Taxes) v. NOBLE.

Lump sum payments

Case Law – Bird (H.M. Inspector of Taxes) v. Martland. Bird (H.M. Inspector of Taxes) v. Allen. [1982] BTC 259 ; Glantre Engineering Ltd. v. Goodhand (H.M. Inspector of Taxes). [1982] BTC 396

Lump sums

Commentary – Tax Reporter ¶412-250 ; Tax Reporter ¶412-275

HMRC Guidance – EIM00710

Case Law – Jarrold (H.M. Inspector of Taxes) v. Boustead McInnes (H.M. Inspector of Taxes) v. Large McInnes (H.M. Inspector of Taxes) v. Simms ; Mimtec Ltd v IR Commrs ; Riley (H.M. Inspector of Taxes) v. Coglan ; Teward v IR Commrs ; Vaughan-Neil v. Commissioners of Inland Revenue

Maternity pay

Commentary – Quick Overview ¶9105

Meaning

Commentary – Tax Reporter ¶412-000 ; Tax Reporter ¶412-050 ; Quick Overview ¶9055

Legislation/Regulatory – SSCBA92 s. 3(1), s. 5(1), (9A)

HMRC Guidance – CTM61660 ; NIM02067 ; NIM02185 ; NIM02205 ; NIM16178 ; NIM16179 ; NIM52050

Case Law – Clayton (H.M. Inspector of Taxes) v. Gothorp ; Laidler v. Perry (H.M. Inspector of Taxes) Morgan v. Perry (H.M. Inspector of Taxes) ; Porter v. R & C Commrs

Medical treatment and insurance

Commentary – Quick Overview ¶9100

Money's worth, meaning

Commentary – Tax Reporter ¶412-050 ; Tax Reporter ¶412-140 ; Quick Overview ¶9055 ; Quick Overview ¶9090

HMRC Guidance – EIM00540 ; EIM00590

Case Law – (1) EDE (H.M. INSPECTOR OF TAXES) v. WILSON (2) EDE (H.M. INSPECTOR OF TAXES) v. CORNWELL ; Clayton (H.M. Inspector of Taxes) v. Gothorp ; Frost Skiphire (Newcastle) Ltd v HM Inspector of Taxes ; HARTLAND v. DIGGINES (H.M. INSPECTOR OF TAXES). ; Laidler v. Perry (H.M. Inspector of Taxes) Morgan v. Perry (H.M. Inspector of Taxes) ; TENNANT v. SMITH (Surveyor of Taxes).

Motive of parties to agreement

Commentary – Tax Reporter ¶412-090

Case Law – Bootle v Bye (HMIT); Wilson v Bye (HMIT) ; Riley (H.M. Inspector of Taxes) v. Coglan ; Sports Club & Ors v HM Inspector of Taxes

National Insurance contributions

– see National Insurance contributions (NICs)

Non-cash benefits

Commentary – Quick Overview ¶9090

Not arising from employment

Commentary – Tax Reporter ¶412-100

Case Law – Pritchard (H.M. Inspector of Taxes) v. Arundale

Paternity pay

Commentary – Quick Overview ¶9105

PAYE

– see PAYE

Payments in lieu of notice

Case Law – SCA Packaging Ltd v Revenue and Customs Commissioners. [2007] BTC 308 ; SCA Packaging Ltd v. R & C Commrs (2006) Sp C 541

Payments in lieu of notice (PILONS)

Legislation/Regulatory – IRInt. 241

Payments treated as

Legislation/Regulatory – SSA98 s. 50

Pecuniary liability

Commentary – Quick Overview ¶9095

Petrol purchased by credit card

Case Law – Richardson (H.M.I.T.) v. Worrall. Westall v. McDonald (H.M.I.T.). [1985] BTC 508

Prizes

Commentary – Quick Overview ¶9080

Question of fact

Commentary – Tax Reporter ¶412-070

Case Law – Edwards (H.M. Inspector of Taxes) v. Bairstow & Harrison ; McBride v Blackburn (HMIT)

Receipts basis of assessment

– see Assessments

Receipts from third parties

Disguised remuneration provisions

– see Disguised remuneration provisions

Generally

Commentary – Quick Overview ¶9075

Received after year for which assessable

Legislation/Regulatory – TMA70 s. 35

Records of

Legislation/Regulatory – SSCBA92 s. 24

Reduction in return for benefits

Commentary – Quick Overview ¶9065

Redundancy payments

– see Redundancy payments

Reimbursements of bank charges

Commentary – Tax Reporter ¶412-550

Case Law – STEDEFORD (H.M. INSPECTOR OF TAXES) v. BELOE.

Relocation expenses

– see Relocation expenses and benefits

Relocation expenses and benefits

Commentary – Quick Overview ¶9110

Restrictive covenants

Commentary – Tax Reporter ¶412-100 ; Quick Overview ¶9070

Case Law – Pritchard (H.M. Inspector of Taxes) v. Arundale

Retirement or removal from office or employment

– see Retirement benefit schemes; Termination payments

Revaluation of flat-rate accrual amount

Legislation/Regulatory – SSAA92 s. 148AA

Reward for passing exams

Commentary – Tax Reporter ¶412-130

HMRC Guidance – EIM01100

Case Law – Ball (H.M. Inspector of Taxes) v. Johnson ; Laidler v. Perry (H.M. Inspector of Taxes) Morgan v. Perry (H.M. Inspector of Taxes)

Reward for services

Commentary – Tax Reporter ¶412-020

Salary in lieu of notice

Case Law – EMI Group Electronics Ltd (formerly Thorn EMI Electronics Ltd) v. Coldicott (HMIT). [1997] BTC 532 ; EMI Group Electronics Ltd v Coldicott (HM Inspector of Taxes). [1999] BTC 294

Schedule E

Agency workers

Case Law – Brady (H.M. Inspector of Taxes) v. Hart (trading as Jaclyn Model Agency). [1985] BTC 373

Compensation for loss of option

Case Law – Teward v IR Commrs (2001) Sp C 270

Contract of employment, non-UK domicile

Case Law – Cooke (H.M. Inspector of Taxes) v. Blacklaws. [1984] BTC 374

Ex gratia payment for loss of rights under share option scheme

Case Law – Wilcock (HM Inspector of Taxes) v. Eve. [1994] BTC 490

Excessive assessment

Case Law – MacEachern v Carr (HM Inspector of Taxes). [1996] BTC 207

Meaning of emoluments from employment, dividends

Case Law – Revenue and Customs Commissioners v PA Holdings Ltd. [2010] BTC 1,626 ; Revenue and Customs Commissioners v PA Holdings Ltd. [2011] BTC 705

Promotional and consultancy agreements, payments under

Case Law – Sports Club & Ors v HM Inspector of Taxes (2000) Sp C 253

Severance payment

Case Law – Nichols v. Gibson (HM Inspector of Taxes). [1994] BTC 503

Schoolteachers seconded to European School, Culham, liability to domestic tax

Case Law – Hurd v. Jones (H.M. Inspector of Taxes) (Case No. 44/84). [1986] BTC 106

Self-assessment

– see Self-assessment

Sickness payments

Commentary – Quick Overview ¶9105

Specific assets not excluded

Commentary – Tax Reporter ¶1006-729

Statutory sick pay

Commentary – Quick Overview ¶9105

Sums deemed to be

Legislation/Regulatory – SI 1977/622 reg. 2

Sums paid on variation of terms of employment

Commentary – Tax Reporter ¶412-200

Case Law – (1) HENRY (H.M. INSPECTOR OF TAXES) v. ARTHUR FOSTER. (2) HENRY (H.M. INSPECTOR OF TAXES) v. JOSEPH FOSTER. (3) HUNTER (H.M. INSPECTOR OF TAXES) v. DEWHURST. ; Antelope v Ellis (HMIT) ; PRENDERGAST (H.M. INSPECTOR OF TAXES) v. CAMERON ; WALES (H.M. INSPECTOR OF TAXES) v. TILLEY

Taxable earnings

Commentary – Quick Overview ¶9050

Taxed award schemes

Commentary – Quick Overview ¶9080

Termination payments

– see Termination payments

Testimonial matches

Commentary – Tax Reporter ¶412-580

Tips

Commentary – Tax Reporter ¶412-540 ; Quick Overview ¶9080

Case Law – CALVERT (H.M. INSPECTOR OF TAXES) v. WAINWRIGHT ; COOPER (Surveyor of Taxes) v. BLAKISTON. ; MUDD v. COLLINS (H.M. INSPECTOR OF TAXES). ; RADCLIFFE (H.M. INSPECTOR OF TAXES) v. HOLT. ; Wright v. Boyce (H.M.Inspector of Taxes)

Trade profits, calculation

Legislation/Regulatory – ITTOIA2005 s. 36, 37

Travel expenses

– see Travel expenses

Troncs

Commentary – Tax Reporter ¶412-540

TUPE transfer for loss of pension scheme benefits, payments made on

Case Law – Kuehne + Nagel Drinks Logistics Ltd & Ors [2010] TC 00314 ; Kuehne + Nagel Drinks Logistics Ltd & Ors v Revenue and Customs Commissioners. [2011] BTC 1,562 ; Kuehne + Nagel Drinks Logistics Ltd & Ors v Revenue and Customs Commissioners. [2012] BTC 58

Unfair dismissal claim, payment made under consent order settling

Case Law – Wilson (HM Inspector of Taxes) v Clayton. [2004] BTC 477

Unpaid remuneration

Companies with investment business

Legislation/Regulatory – CTA2009 s. 1249, 1250, Sch. 2, para. 133

Deductions

Legislation/Regulatory – ITTOIA2005 s. 36, 37

Employee benefit contributions

Legislation/Regulatory – ITTOIA2005 s. 38, 274

Non-trades and non-property businesses

Legislation/Regulatory – ITTOIA2005 s. 865

Voluntary payments

Commentary – Tax Reporter ¶412-500

Voluntary pensions

Commentary – Tax Reporter ¶412-550

Case Law – STEDEFORD (H.M. INSPECTOR OF TAXES) v. BELOE.

Vouchers

– see Vouchers

Work-related training

Commentary – Quick Overview ¶9120