SE42201 - Emoluments from offices and employments: basis of assessment - example of a case where the year of assessment is not the year that the emolument is for

Section 202A(1) and (2)(a) ICTA 1988

Example

An employee is entitled to a bonus for the year ended 31 March 2000, the amount of which depends on the company’s results for that year. The company’s accounts for the year ended 31 March 2000 are finalised on 31 October 2000, and the employee’s bonus of £5000 is paid on 30 November 2000.

The bonus is an emolument for 1999/2000, so the first step is to check that it falls within one of the three Cases of Schedule E in that year (see SE40001 onwards). If it does, it is chargeable to Income Tax in 2000/01, the year the employee received it (or, if within Case III, the year the employee received it in the United Kingdom).

Note that the Case of Schedule E which applies depends on the circumstances in the year that the emolument is for. The year of assessment depends on the year of receipt (or, for Case III, the year of receipt in the United Kingdom).