EIM42210 - Employment income: basis of assessment for general earnings: table setting out the basis of assessment to be used for particular types of payment, and benefits in kind
The receipts basis of assessment applies to all general earnings (including benefits in kind) from an office or employment (see EIM42201).
There are rules that tell you when different types of earnings are treated as received. They are summarised in the following table.
Table 1 covers all directors and employees whatever their rate of pay.
Table 2 provides additional rules that do not apply to lower paid employees (see EIM20100).
Table 1: all directors and employees whatever their rate of pay
| Type of earnings | Years assessable | Statutory authority |
| Employee resident, ordinarily resident and domiciled in UK: money earnings | The year the earnings are received (see EIM42260 for the meaning of received) | Section 15(2) ITEPA 2003 |
| Employee resident and ordinarily resident but not domiciled in UK: money earnings except chargeable overseas earnings | The year the earnings are received (see EIM42260 for the meaning of received) | Section 21(2) ITEPA 2003 |
| Employee resident but not ordinarily resident in UK: money earnings for UK duties | The year the earnings are received (see EIM42260 for the meaning of received) | Section 25(2) ITEPA 2003 |
| Employee not resident in UK: money earnings for UK duties | The year the earnings are received (see EIM42260 for the meaning of received) | Section 27(2) ITEPA 2003 |
| Employee resident and ordinarily resident but not domiciled in UK: chargeable overseas earnings | The year the earnings are received in the United Kingdom (see EIM42370 for the meaning of received in the United Kingdom) | Section 22(2) ITEPA 2003 |
| Employee resident but not ordinarily resident in UK: foreign earnings | The year the earnings are received in the United Kingdom (see EIM42370 for the meaning of received in the United Kingdom) | Section 26(2) ITEPA 2003 |
| Money's worth (see EIM00530) | The year the benefit is provided | Sections 19(4) and 32(4) ITEPA 2003 |
| Pecuniary liability payments (see EIM00580) | The year the payment is made | Sections 19(4) and 32(4) ITEPA 2003 |
| Non-cash vouchers (see EIM16010 onwards) | Cheque voucher - the year the employee uses it to get goods or services or, if earlier, the year it is appropriated to the employee. Other voucher - the later of the year the employer incurs the expense or the year the voucher is received (see EIM16030). | Sections 19(3) and 32(3) ITEPA 2003 |
| Credit tokens (see EIM16090 onwards | The year the token is used | Sections 19(2) and 32(2) ITEPA 2003 |
| PAYE cash vouchers (see EIM16110) | The year the employee receives the voucher or, if earlier, the year it is appropriated to the employee | Sections 19(2) and 32(2) ITEPA 2003 |
| Living accommodation (see EIM11300 onwards) | The year during which accommodation is provided | Sections 19(2) and 32(2) ITEPA 2003 |
| Payments on cessation,
or a change in duties or earnings etc (see
EIM13000 onwards)
[Note: these payments are taxed as "specific employment income", not general earnings. They are included here for completeness.] | The year in which the
payment or benefit is received.
As regards the meaning of receipt in relation to payments and benefits chargeable under Section 403, see EIM13110. | Section 403(2) ITEPA
2003
|
| Sick pay (see EIM06400 onwards) | The year the sick pay is received | See above entries for money earnings |
| Restrictive covenants (see EIM03600 onwards) | The year the payment is made | Section 225(1) ITEPA 2003 |
| Pensions and annuities (see EIM74101 onwards) | The receipts basis does not apply to pensions and annuities. The amount chargeable is the amount arising, or payable, in the year | Sections 571, 578, 581, 616 and 634(2) ITEPA 2003 |
| Social Security benefits (see EIM76000 onwards) | The receipts basis does not apply to Social Security benefits. The amount chargeable is the amount arising, or payable, in the year | Section 661(2) ITEPA 2003 |
Table 2: additional rules that do not apply to lower paid employees
| Type of earnings | Years assessable | Statutory authority |
| Expenses payments (see EIM20601) | The year the payment is received (see EIM42260) | See entries for money earnings in Table 1 above |
| Benefits other than those mentioned below (see EIM21001) | The year the benefit is provided | Sections 19(2) and 32(2) ITEPA 2003 |
| Car benefits (see EIM23002) | Years in which the car is available | Sections 19(2) and 32(2) ITEPA 2003 |
| Car fuel (see EIM23750) | Years in which the fuel is provided | Sections 19(2) and 32(2) ITEPA 2003 |
| Beneficial loans (see EIM26102) | Years in which the loan is outstanding | Sections 19(2) and 32(2) ITEPA 2003 |
| Loan written off etc (see EIM21740) | The year the loan is written off or released (see EIM21741) | Sections 19(2) and 32(2) ITEPA 2003 |
| Disposal of shares (see SSM6.52) | The year of the disposal | Sections 19(2) and 32(2) ITEPA 2003 |
| Director's PAYE paid by employer (see EIM21790) | The year in which the tax is paid to the Board, except that if the tax is paid after the directorship has ended the charge is in the year the directorship ended (see EIM21795) | Sections 19(2) and 32(2) ITEPA 2003 |
