employment income

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As may be expected from a taxing statute, the Income Tax (Earnings and Pensions) Act 2003 gives a very wide definition of the “employment income” that is subject to tax under that statute. Employment income means any salary, wages or fee, gratuity, other profit, or incidental benefit of any kind obtained by an employee if it is for money or money's worth or “anything else that constitutes an emolument of the employment”. In case this definition is not wide enough, Parliament has added to the definition of employment income “any amount treated as earnings” and “any amount which counts as employment income”. Thus a payment for breach of an employment contract is taxed as employment income, as is the cost to the employer of providing a benefit in kind for an employee.

Subjects: Law.

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