Income Tax (Earnings and Pensions) Act 2003 section 61F

Sections 61D and 61E: application of rules relating to earnings from employment

Section 61F defines how payments and benefits are identified, valued, and treated as received for the purposes of the managed service company rules in sections 61D and 61E.

• A "payment or benefit" is anything that would count as general earnings if received by an employee for performing their duties
• Cash payments and cash benefits are valued at the amount received; non-cash benefits are valued at their cash equivalent
• For living accommodation, the cash equivalent is the higher of the general earnings amount and the amount calculated under section 398(2)
• Cash items are treated as received when payment is made; non-cash benefits are treated as received at the point they would have been had the worker been an actual employee