EIM20111 – The benefits code: employee
with employment for only part of a year
When working out whether an employment has earnings of less than
£8,500 a year (
EIM20101):
- if an employment, other than as a
director, begins or ends during the year, convert the earnings for
the part year to an annual rate in order to decide whether or not
it is an excluded employment (
EIM20007)
- for example, if an employee commenced work
on 6 January and earned £2,500 by 5 April, the earnings at an
annual rate are £10,000 (4 x £2,500). Hence this is not
an excluded employment and the benefits code applies to the
employment in full (
EIM20006).
