Section 55 — Income Tax (Earnings and Pensions) Act 2003: Application of rules relating to earnings from employment

Application of rules relating to earnings from employment 55 1 The following provisions apply in relation to the calculation of the deemed employment payment.

2 A “ payment or benefit ” means anything that, if received by an employee for performing the duties of an employment, would be earnings from the employment.

3 The amount of a payment or benefit is taken to be—

a in the case of a payment or cash benefit, the amount received, and b in the case of a non-cash benefit, the cash equivalent of the benefit.

4 The cash equivalent of a non-cash benefit is taken to be—

a the amount that would be earnings if the benefit were earnings from an employment, or b in the case of living accommodation, whichever is the greater of that amount and the cash equivalent determined in accordance with section 398(2).

5 A payment or benefit is treated as received—

a in the case of a payment or cash benefit, when payment is made of or on account of the payment or benefit;

b in the case of a non-cash benefit that is calculated by reference to a period within the tax year, at the end of that period;

c in the case of a non-cash benefit that is not so calculated, when it would have been treated as received for the purposes of Chapter 4 or 5 of this Part (see section 19 or 32) if—

i the worker had been an employee, and ii the benefit had been provided by reason of the employment.