Income Tax (Earnings and Pensions) Act 2003 section 30

Treatment of earnings for year in which employment not held

Section 30 deals with how 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 would fall into a tax year before the employment began, they are treated as earnings of the first tax year in which the employment is held.
• Where earnings would fall into a tax year after the employment ended, they are treated as earnings of the last tax year in which the employment was held.
• This reallocation ensures that earnings are always matched to a tax year in which the employment actually exists, preventing them from falling into a gap.
• This section does not apply to amounts treated as earnings under the benefits code (Chapters 2 to 10 of Part 3), which have their own rules for determining the relevant tax year.