Income Tax (Earnings and Pensions) Act 2003 section 335

Application of deductions provisions: "earnings charged on receipt" and "earnings charged on remittance"

Section 335 explains how the type of earnings — whether taxed when received or when remitted to the UK — determines which expense deduction rules apply to an employee.

• Expense deductions under sections 336 to 342 are only available against earnings that are taxed on receipt (under sections 15 or 27)
• Section 353 provides a separate deduction for similar expenses, but only against earnings that are taxed on remittance (under sections 22 or 26)
• Where an employment produces both types of earnings, additional restrictions under section 354 may limit the deductions available
• "Earnings charged on receipt" broadly covers UK and overseas earnings of UK-resident employees taxed as they arise, while "earnings charged on remittance" covers overseas earnings taxed only when brought into the UK