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Legal Terms - employment Income
The Income Tax (Earnings and Pensions) Act 2003 provides an extensive definition of "employment income" liable to taxation under the act. Employment income refers to any pay, wages, fees, gratuities, other profits, or incidental benefits received by an employee, whether in monetary form or equivalent value, or any other form that qualifies as a *emolument of the employment. If this definition is insufficiently comprehensive, the legislature has expanded the definition of employment income to include "any amount regarded as earnings" and "any amount classified as employment income." Consequently, compensation for violation of an employment contract is classified as employment income, as is the expense incurred by the employer in delivering a benefit in kind to an employee. A payment for employment termination falls under the legislative definition of employment income as per the Income Tax (Earnings and Pensions) Act 2003, section 402. A specific tax code is implemented, potentially exempting income tax payments up to a designated threshold (s 403).
The Income Tax (Earnings and Pensions) Act 2003 provides an extensive definition of "employment income" liable to taxation under the act. Employment income refers to any pay, wages, fees, gratuities, other profits, or incidental benefits received by an employee, whether in monetary form or equivalent value, or any other form that qualifies as a *emolument of the employment. If this definition is insufficiently comprehensive, the legislature has expanded the definition of employment income to include "any amount regarded as earnings" and "any amount classified as employment income." Consequently, compensation for violation of an employment contract is classified as employment income, as is the expense incurred by the employer in delivering a benefit in kind to an employee. A payment for employment termination falls under the legislative definition of employment income as per the Income Tax (Earnings and Pensions) Act 2003, section 402. A specific tax code is implemented, potentially exempting income tax payments up to a designated threshold (s 403).
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