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Commentary

3.2 Notional payments

United Kingdom

Notional payments are not cash payments. However, various types of 'emoluments paid other than in cash' are subject to the PAYE regime. There is a practical issue with the operation of PAYE, so special rules apply.

Readily convertible assets are a common form of notional payments and are discussed at 3.3.

On making a notional payment to an employee, an employer must:

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