Part 11

Pay As You Earn
Chapter 4

PAYE: special types of income

Income provided in other ways

Employment income under Part 7A
695A
1
This section applies if—
a
the value of a relevant step counts as employment income under Chapter 2 of Part 7A, and
b
the relevant step is not the payment of a sum of money,
and references to A and B are to be read accordingly.
2
For the purposes of
PAYE
regulations B is treated as making a payment of
PAYE
income of A of an amount which, on the basis of the best estimate which can reasonably be made, is—
a
the amount of the employment income, less
b
so much of that amount (if any) to which section 554Z9(2) or 554Z10(2) applies.
3
The payment is treated as made on the latest of the following days—
a
the day on which the relevant step is taken,
b
the day on which A's employment with B starts, and
c
the day which is 30 days after the day on which FA 2011 is passed.
4
Subsection (2) does not apply if the person who takes the relevant step (whether or not a person to whom
PAYE
regulations apply) accounts for income tax on the relevant step in accordance with
PAYE
regulations.
S. 695A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 31
Pt. 11 power to amend or repeal conferred (21.7.2009) by Finance Act 2009 (c. 10), Sch. 58 para. 10