Income Tax (Earnings and Pensions) Act 2003 section 17

Treatment of earnings for year in which employment not held

Section 17 deals with how general earnings from an employment are allocated when they would otherwise fall into a tax year in which the employee does not actually hold that employment.

• Where earnings relate to a tax year before the employment began, they are treated as earnings for the first tax year in which the employment is held
• Where earnings relate to a tax year after the employment ended, they are treated as earnings for the last tax year in which the employment was held
• This rule applies only to general earnings (such as salary, bonuses and other direct remuneration) and not to benefits in kind under the benefits code
• Benefits covered by the benefits code are only treated as earnings if provided during a year in which the employment is held; if provided outside that period, they fall outside the scope of this section entirely