Earnings and benefits

STOP PRESS: Abolition of non-dom regime and remittance basis of taxation from 2025–26: Finance Act 2025 abolished the remittance basis of taxation and replaced it with a residence-based regime from 6 April 2025. The changes include the introduction of a new Foreign Income and Gains (FIG) regime, and amendments to overseas workday relief. For information on these changes, see Practice Note: The abolition of the remittance basis of taxation from 2025–26.

An employee can be remunerated in a number of ways, and any type of reward provided in relation to an individual’s employment may result in income tax and National Insurance contributions (NICs) liabilities. Consequently, Pay As You Earn (PAYE) obligations are likely to arise for the employer. The precise nature of the income tax and NICs charge will depend upon the type of remuneration.

Earnings

The UK employment tax provisions set out a comprehensive code which charges tax on both:

•
general earnings, and
•
specific employment income

'General earnings' includes, among other items, any salary, wages or fee, any item within the benefits code and 'anything else that constitutes

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