Commentary on Sections Glossary Part 2: Employment income: charge to tax Section 9: Amount of employment income charged to tax
49.This is a new section that explains what amounts are charged to tax for each stream of employment income. Subsection (2) sets out that for earnings, the amount charged to tax is “net taxable earnings” – this is another new label. It describes the amount of income from the employment that has been allocated to a particular tax year by reference to the timing rules as determined by the Cases of Schedule E in section 19(1) of ICTA (now contained in Chapters 4 and 5 of this Part), less any available deductions.
50.Subsection (3) explains where to find the mechanics of how to calculate net taxable earnings in the following provisions of Part 2.
51.Subsection (4) sets out that, for specific employment income, the amount charged to tax is “net taxable specific income” – this is another new label. It is the amount allocated to that year by the relevant provisions less any available deductions.
52.Subsection (5) explains where to find the mechanics of how to calculate net taxable specific income in the following provisions of this Chapter.
53.Subsection (6) makes it clear that tax may only be charged under this Chapter for a particular year on taxable earnings and taxable specific income. Paragraph (a)derives from the closing words of paragraph 1 of section 19(1) of ICTA. Paragraph (b) is new.