SE42200 - Emoluments from offices and employments: basis of assessment – introduction - arrangement of guidance
Section 202A(1) and (2)(a) ICTA 1988
Introduction
There are two stages to finding out whether, and when, income
from an office or employment is chargeable to Income Tax.
The first step is to decide if the emoluments fall within one
of the three Cases of Schedule E. This will not usually be a
problem if the person concerned has spent all their time living and
working in the United Kingdom. In that case, all their emoluments
will usually be chargeable in full under Case I of Schedule E. But
if the person has spent time living and working outside the United
Kingdom, you will have to consider the detailed guidance at
SE40001 onwards to decide which, if any,
of the Cases applies.
If none of the Cases of Schedule E applies, the emoluments
are not chargeable to tax under Schedule E. But see
SE42250 as regards amounts chargeable
under Section 148 ICTA 1988.
If the emoluments do fall within one of the Cases of Schedule
E, the second step is to decide the year in which they are to be
charged to tax. For 1989/90 onwards, emoluments are charged to
tax
- in the year of assessment in which they are received, if they fall within Case I or II
- in the year of assessment in which they are received in the United Kingdom, if they fall within Case III.
This applies whether the emoluments are for the year of receipt,
or for some other year. The year of assessment will not necessarily
be the same as the year
for which they are assessable emoluments (see
example
SE42201).
As regards cases where the office or employment is not held
at the time when the emoluments are received, see
SE42220.
Arrangement of guidance
The detailed guidance on the basis of assessment for emoluments chargeable under Schedule E is arranged as shown in the following table.
| SE42205 | 'Earnings basis' and 'accounts basis' not to be used for 1989/90 onwards |
| SE42210 | Table setting out the basis of assessment for particular types of payment, and benefits in kind |
| SE42220 | Emoluments received before an employment begins, or after it ends |
| SE42230 | Money emoluments chargeable under Case I or II: general |
| SE42240 | Link between the basis of assessment and operation of PAYE |
| SE42250 | Special rules for termination, etc payments chargeable under Section 148 ICTA 1988 |
| SE42260 | Meaning of 'received': general |
| SE42270 | The time when an emolument is received: actual payment |
| SE42280 | Payments 'on account of emoluments' |
| SE42290 | Entitlement to payment of emoluments |
| SE42300 | Entitlement to director’s emoluments |
| SE42310 | Crediting of director’s emoluments in the accounts or records of the company |
| SE42320 | Limited scope of the 'crediting ' rule |
| SE42330 | Director’s emoluments fixed before the end of the period for which they are due |
| SE42340 | Director’s emoluments fixed after the end of the period for which they are due |
| SE42350 | Director’s emoluments conditional on results: the date they are to be regarded as 'determined' |
| SE42360 | The time at which a person has to be a director for the special rules to run |
| SE42370 | Basis of assessment for emoluments falling within Case III |
| SE42380 | Death of employee or office holder after 5 April 1989 |
| SE42390 | The charge on the personal representatives of a deceased employee or office holder |
| SE42400 | Time limit for assessment of personal representatives |
| SE42410 | Death of employee or office holder after 5 April 1989: emoluments received up to the date of death |
| SE42420 | More than usual number of pay days in the year |
| SE42430 | Timing of expenses deductions |
| SE42440 | Assessments made after a change of practice |
| SE42450 | Income to which the change of practice rule applies |
| SE42460 | The decision in Walters v Tickner |
| SE42470 | How the change of practice rule applies |
| SE42700 onwards | Waivers of remuneration |
