02: Employment
Employees and directors are taxed on all their remuneration and benefits from their employment or directorship. As an employee or director:
- Your income is taxed in the tax year in which you receive it.
- Your employers must deduct tax from your pay under pay as you earn (PAYE). Most pensions are also taxed in this way.
- Your expenses as an employee or director must be wholly, exclusively and necessarily incurred in the performance of your duties. This is a stricter requirement than self-employed businesses need to meet for expenses to be allowable.
