Page 49 - F6 Slides (CGT,TT,ET AND PT)

Employees tax

• Employees’ tax on any ‘variable remuneration’ must only be withheld on

the date on which the amount is paid to the employee (par 2(1B)). This is

because variable remuneration is deemed to accrue to the employee on

the date on which the employer pays the amount to the employee.

Variable remuneration’ is defined in s 7B(1) and includes l

• overtime pay, bonus or commission l

• travel allowances or advances paid l

• any amount paid in respect of any period of leave not taken by the

employee during that year.

• Section 7B also applies if variable remuneration is paid to a director of a

private company.

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