The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This note sets out the basic principles of employment income and how they apply to earnings. Any type of reward received in relation to an individual’s employment may result in an employment income tax charge.
In addition to understanding what income is to be taxed / subject to NIC, there are also comprehensive rules on the collection of income tax in relation to employment income under the Pay As You Earn (PAYE) withholding regime. For more detail on PAYE, see the Setting up a payroll guidance note and the other notes in the ‘Mechanics of payroll’ sub-topic.
Broadly, an employee is subject to income tax in the UK if they are resident in the UK or carrying out employment duties in the UK. Where there are overseas elements to any employment, it is helpful to look at the following legislation which sets out when income is taxed in the UK:
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