Income Tax (Earnings and Pensions) Act 2003 section 38

Earnings for period of absence from employment

Section 38 explains how earnings received during a period of absence from work should be treated for tax purposes, specifically whether they count as earnings for duties performed in the UK or outside the UK.

• Applies to individuals who ordinarily perform all or part of their employment duties in the UK
• Earnings received during a period of absence are generally treated as earnings for UK duties
• The exception is where the earnings would have related to duties performed outside the UK had the absence not occurred
• This treatment determines which charging rules apply when calculating taxable earnings for the year