Identifying Employment Income - Lecture Notes

What constitutes general earnings according to ITEPA 2003, s.7?

General earnings includes salary, wages, fees, gratuities, and any amount treated as earnings by ITEPA.

According to ITEPA 2003, s.62, what is defined as 'earnings'?

Earnings are defined as salary, wages, fees, gratuities, and any other emolument from employment.

What is meant by 'money's worth' in ITEPA 2003?

Money's worth refers to something of direct monetary value to the employee that can be converted into money.

In which case was the provision of a car by an employer determined to be an emolument?

Heaton v Bell (46TC211) determined that the provision of a car was an emolument.

Give an example of a payment that does not count as earnings.

A wedding gift is typically not taxable as it is not linked to employment.

What did Lord Radcliffe state regarding assessability of payments in Hachstrasser v Mayes?

A payment is assessable if received in return for acting as an employee.

What are 'golden hellos'?

Inducements or bonuses that are taxable as they are rewards for services to be rendered.

What takes precedence in calculating benefits under ITEPA 2003?

Specific benefits codes for calculating cash equivalents take precedence over the money's worth principle.

What do clawbacks of earnings create according to HMRC v Martin?

Clawbacks create 'negative earnings' which can be set off against other incomes.

What is specific employment income defined as according to ITEPA 2003, s.7?

Specific employment income includes non-approved retirement payments, securities, termination payments, and disguised remuneration.

How is Xander's total earnings calculated?

Xander’s total earnings include salary, bonus, voucher, mileage, and shares, totaling £43,350.

What are the deductions from Xander's general earnings?

Deductions include mileage, pension contributions, payroll giving, and uniform costs.

When are cash payments deemed received under the receipts basis?

Cash payments are deemed received on the earlier of the physical payment date or when the employee is legally entitled to it.

For directors, what is the additional rule regarding date of receipt?

Payments are received at the date credited in company accounts or determined earnings by the end of accounting period.

In which scenario would Gary's income still be taxable despite not receiving