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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 will not affect their treatment for tax, and so will not be addressed here. For further commentary, see the Tax on cash earnings - overview guidance note (in the Employment Taxes module) and also Simon’s Taxes E4.104.

Broadly, employment income will include anything paid to, or provided for, an employee (or their family) by their employer. For the purposes of PAYE, the word ‘employee’ always includes directors. This 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 an emolument of the