EIM13884 - PENP formula: how to calculate 바카라 사이트楤P바카라 사이트�: 바카라 사이트榓llowances바카라 사이트�

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).

EIM13882 explains how to calculate the amount of 바카라 사이트楤P바카라 사이트� for the purpose of applying the PENP formula.

바카라 사이트楤P바카라 사이트� means 바카라 사이트楤asic Pay바카라 사이트�. 바카라 사이트楤asic Pay바카라 사이트� 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 disregards various items including 바카라 사이트�바카라 사이트ny amount received by way of바카라 사이트� allowance바카라 사이트�바카라 사이트�.

The term 바카라 사이트榓llowance바카라 사이트� is wide in scope. An allowance is an amount received by an employee as a supplementary payment over and above their standard pay. The period over which the allowance is paid, or the activity to which the allowance relates may, or may not be temporary in nature. Allowances could be paid:

  • in recognition of particular circumstances, such as an additional responsibility allowance for temporarily undertaking duties not otherwise required under the employment contract
  • in recognition of particular working arrangements, such as weekend working allowance for an employee working unsociable hours
  • to reimburse an employee for out of pocket expenses, such as a travel allowance to cover an employee바카라 사이트檚 transport costs whilst performing duties of the employment

The above list is not exhaustive. Whether something is an 바카라 사이트榓llowance바카라 사이트� or makes up part of an employee바카라 사이트檚 basic pay is a matter of fact and very much dependant on the terms of the particular agreement.

바카라 사이트楥ar allowances바카라 사이트� are an example of a type of payment that could constitute either basic pay or an 바카라 사이트榓llowance바카라 사이트� depending on the terms of the agreement. In general, if an employee is provided with a choice between a company car and a car allowance then the car allowance would likely be an allowance for the purpose of the PENP legislation. However, if the car allowance is provided with no alternative then the facts might suggest the amount of the allowance is, in reality, an additional amount of basic pay and not an 바카라 사이트榓llowance바카라 사이트� for the purpose of the PENP calculation.

An allowance does not include any amount that has, in reality, been consolidated into an employee바카라 사이트檚 standard pay. For example, if an employee ceases to provide a benefit but compensates employees by increasing salaries or paying an allowance the amount should be included in basic pay.