Income Tax (Earnings and Pensions) Act 2003 section 216

Provisions not applicable to lower-paid employments

Section 216 sets out which parts of the benefits code do not apply to employees in lower-paid employment, and identifies the conditions under which this exemption is available.

• The benefits code applies to all employees, but certain charging provisions do not apply to those in lower-paid employment who meet specific conditions
• Condition A is straightforward: the employee must not be a director of the company
• Condition B allows certain directors to qualify if they have no material interest in the company and are either full-time working directors or the company is non-profit making or established solely for charitable purposes
• Where an employee qualifies for this exemption, the word "employee" in the relevant chapters of the benefits code is read as excluding that person