Employment earnings receipt basis (UK)
Money earnings from employment are generally assessed in the tax year in which they are treated as received. For an employee who is not a director, the general receipt time is the earlier of actual payment (including payment on account) and entitlement to payment. Directors have additional timing rules, and particular foreign earnings and other employment income may require separate treatment.
Worked example
An employee who is not a director becomes entitled to a £2,400 bonus payment on 30 March 2026; the employer pays it on 10 April 2026. Under the general entitlement rule, the bonus is treated as received on 30 March and falls in the 2025–26 tax year, assuming no special rule applies.
Common mistake
Using only the bank payment date when the employee became entitled to payment earlier, or applying the ordinary employee rules as the complete set for directors.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |