Income Tax (Earnings and Pensions) Act 2003 section 55

Application of rules relating to earnings from employment

Section 55 explains how to measure and time the various amounts used when calculating the deemed employment payment under the intermediaries legislation (IR35).

• A "payment or benefit" means anything that would be taxable earnings if received by an employee for performing the duties of a job
• Cash payments and benefits are measured at the amount received; non-cash benefits are measured at their cash equivalent using normal employment income rules
• For living accommodation, the cash equivalent is the higher of the normal employment income amount and the amount determined under the employer-financed retirement benefits rules in section 398(2)
• The timing of when a payment or benefit is treated as received depends on whether it is cash, a period-based non-cash benefit, or another type of non-cash benefit