EIM13882 - PENP Formula: how to calculate 바카라 사이트楤P바카라 사이트�

Section 402D ITEPA 2003

EIM13874 explains that, with effect from 6 April 2018, the post-employment notice pay element of all 바카라 사이트榬elevant termination awards바카라 사이트� is chargeable to income tax as general earnings. Post-employment notice pay is calculated using the PENP formula (see EIM13880).

In the PENP formula, 바카라 사이트楤P바카라 사이트� means 바카라 사이트楤asic Pay바카라 사이트�. Basic Pay is the total employment income the employee receives, or has the right to receive (even if they give up that right) in their last pay period before the 바카라 사이트榯rigger date바카라 사이트� but excludes:

  • any amount received by way of overtime, bonus, commission, gratuity or allowance (see EIM13884)
  • any amount received in connection with the termination of the employees employment
  • any amount that is a taxable benefit under 바카라 사이트渢he benefits code바카라 사이트� (see EIM20001 onwards)
  • any amount that is treated as earnings within Chapter 12 of Part 3 of ITEPA 2003 (see below for a list of items included here)
  • any amount which counts as employment income within Part 7 of ITEPA 2003, which applies to employment related securities taxable as specific employment income (see the Employment Related Securities Manual), and
  • any employment-related securities (as defined in Chapter 1 of Part 7 ITEPA 2003) that constitute earnings within the meaning of section 62 ITEPA 2003 (see the Employment Related Securities Manual)

Chapter 12 of Part 3 of ITEPA 2003 relates to 바카라 사이트榦ther amounts treated as earnings바카라 사이트�. These include: sickness or disability payments (section 221 ITEPA 2003); payments by an employer on account of tax where deduction isn바카라 사이트檛 possible (section 222 ITEPA 2003); payments on account of director바카라 사이트檚 tax (section 223 ITEPA2003); payments for restrictive undertakings (sections 224 and 225 ITEPA 2003); shares of employee shareholders treated as earnings (sections 226A to 226D ITEPA 2003, and sporting testimonial payments (section 226E ITEPA 2003).

For the purpose of calculating 바카라 사이트楤P바카라 사이트� the total employment income is the amount of employment income before any reduction is made under a salary sacrifice arrangement.

EIM13886 explains the meaning of the last pay period before the 바카라 사이트榯rigger date바카라 사이트�.

EIM13898 provides the definition of 바카라 사이트榯rigger date바카라 사이트�.