|
further to my previous reply you may find this useful, incidently it is from the Tax Credit Guidance Manual which you can view on this site by going to Tools.
TCTM04106 - Income: Employment income rules
Specific payments and benefits in kind included as income for tax credit purposes (where not already counted as earnings)
Any payments of expenses which are chargeable to income tax under section 62 or 72 of the ITEPA 2003
The cash equivalent of any non-cash voucher received by the claimant chargeable to income tax under section 87 of the ITEPA 2003
The cash equivalent of any credit token received by the claimant chargeable to income tax under section 94 of the ITEPA 2003
The cash equivalent of any cash voucher received by the claimant chargeable to income tax under section 81 of the ITEPA 2003
Any amount chargeable to income tax under Chapter 3 of Part 6 of the ITEPA 2003
So much of a payment of Statutory Sick Pay received by the claimant as is chargeable to income tax under section 660 of the ITEPA 2003
The amount (if any) by which a payment of Statutory Maternity Pay (SMP), Statutory Paternity Pay or Statutory Adoption Pay exceeds £100 per week
The cash equivalent of the benefit of a car made available for private use under section 120 of ITEPA 2003
The cash equivalent of car fuel provided under section 149 of ITEPA 2003
Any sum to which section 225 of the ITEPA 2003 (taxation of consideration for certain restrictive undertakings) applies
Strike pay received by the claimant as a member of a trade union
The amount of a gain from a security option (such as company shares, bonds, Government gilts etc) that is charged to income tax for that year under Part 7 of ITEPA
Any payments of expenses which are chargeable to income tax under sections 62 or 72 of the ITEPA 2003
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(b)
Expenses which count as earnings within section 62 of ITEPA are "round sum" expenses allowances which are payable irrespective of whether the employee spends it a particular way and reimbursement of an employee's purely private expenses. Section 72 applies where the claimant is a director or where an employee's earnings exceed £8500 a year or more. It treats as earnings any expenses payments which do not fall within section 62: for example, this includes those expenses such as mileage allowances paid by an employer to an employee for the use of his own car on business (other than those on which there is no liability to income tax under s229- 236 ITEPA 2003).
The cash equivalent of any non-cash voucher received by the claimant chargeable to income tax under section 87 of ITEPA 2003
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(c)
These are vouchers, which can be exchanged for money, goods or services.
The general rule is that income must include an amount equal to the additional expense incurred by the employer or third party specifically for the purpose of providing:
The voucher itself and
The money, goods or services for which the voucher can be exchanged less
Any part of the expense made good to the provider by the employee.
The full rules can be found via the first three rows in the table in the Employment Income Manual EIM16140
The cash equivalent of any credit token received by the claimant chargeable to income tax under section 94 of ITEPA 2003
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(d)
These are largely credit cards made available for obtaining money, goods and services for private use.
The general rule is that income must include an amount equal to the expense incurred by the employer or third party specifically for the purpose of providing the credit-token in or in connection with the provision of the money, goods or services obtained, less any part of the expense made good to the provider by the employee.
The full rules can be found via the fourth row in the table in Employment Income Manual para EIM16140.
The cash equivalent of any cash voucher received by the claimant chargeable to income tax under section 81 of ITEPA 2003
The Tax Credits (Definition and Calculation of Income) Regulations, Reg. 4(1)(e)
The general rule is that income must include an amount equal to the sum of money for which the voucher is capable of being exchanged.
The full rules can be found via the fifth row in the table in Employment Income Manual para EIM16140.
Any amount chargeable to income tax under Chapter 3 of Part 6 of the ITEPA 2003
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(f)
These are payments in connection with the termination of a person's employment, statutory redundancy pay and compensation payments for wrongful or unfair dismissal. The amount to include as income is the amount in excess of £30,000.
This is the income tax provision. See Employment Income Manual paras EIM13760 (redundancy) and EIM12950-12970 (compensation) for further details. All payments within Chapter 3 of Part 6 of ITEPA, to the extent that they are taxable, count as income from employment for tax credit purposes.
So much of a payment of Statutory Sick Pay received by the claimant as is chargeable to income tax under Chapter 2 of Part 10 of ITEPA 2003
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(g)
(See Employment Income Manual para EIM76350).
The amount (if any) by which a payment of Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP) or Statutory Adoption Pay (SAP) exceeds £100 per week
The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(h)
This is effectively a disregard of £100 for each week of SMP, SPP or SAP received in the tax year. Note that where the rate of SMP, SPP or SAP received is less than £100 per week, a deduction of £100 for each week of SMP, SPP or SAP in the tax year can still be made from the total pay and SMP, SPP or SAP income for the year.
This is different from the income tax treatment. All SMP, SPP and SAP is included as income for income tax purposes.
|
