EIM20110 - The benefits code: whether an
employment has earnings of less than £8,500 a year: the effect
of changes in rates of pay during the year
When working out whether an employment has earnings of less than
£8,500 a year (
EIM20101) and consequently whether or
not it is an excluded employment (
EIM20007):
- if an employment continues throughout the
year, take all the earnings for the whole year into account in
accordance with
EIM20101 onwards,
- if the employment is for part of the year
only see
EIM20111,
- if the employee is employed part-time,
only include the earnings
actually received. Do not try to 'gross up' to a
full-time rate,
- if the earnings total £8,500 or more
the employment
is subject to the full benefits code (
EIM20006)
for the whole year,
- if the earnings total less than
£8,500 the employment is an excluded employment
for the whole of that year.
-
Never contend that, where an employee's pay varies
from month to month, he is within the full benefits code for the
months in which he is paid at a rate exceeding £8,500 a year,
and in an excluded employment (EIM20007) for the others.
