Income Tax (Earnings and Pensions) Act 2003 section 9

Amount of employment income charged to tax

Section 9 explains how the amount of employment income charged to tax for a particular tax year is determined, distinguishing between general earnings and specific employment income.

• For general earnings, the taxable amount is the "net taxable earnings" from an employment in the year, calculated by taking the earnings allocated to that tax year under the timing rules and deducting any available allowances or deductions.
• For specific employment income, the taxable amount is the "net taxable specific income" from an employment for the year, calculated by taking the income allocated to that year under the relevant provisions and deducting any available allowances or deductions.
• No employment income can be charged to tax for a particular tax year unless it qualifies as taxable earnings or taxable specific income from an employment in or for that year.
• The detailed mechanics for calculating net taxable earnings and net taxable specific income are set out in subsequent provisions of Part 2 of the Act.