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Employment income is defined in the legislation and divided into:

1. •

   general earnings, and

2. •

   specific employment income

ITEPA 2003, s 6(1); EIM00610

For the vast majority of purposes, the differences between general earnings and specific income does not affect their treatment for tax, and so is not addressed here. For further commentary, see the Tax on cash earnings - overview guidance note.

Broadly, employment income includes anything paid to, or provided for, an employee (or their family) by their employer. The term ‘employee’ includes directors. Therefore, any mention of ‘employee’ in the guidance below should be read as employee or director unless otherwise stated.

Employment income includes:

1. •

   any salary, wages or fee (ie cash remuneration such as salary or bonus)

2. •

   any gratuity or other profit or incidental benefit of any kind obtained by the employee or director if it is money or money’s worth (ie something of direct monetary value or capable of being converted into money or monetary value such as tips (see below) or cash vouchers), or

3. •

   anything else that constitutes