Taxes Consolidation Act 1997 section 112

Basis of assessment, persons chargeable and extent of charge

Section 112 sets out how income tax under Schedule E is charged on earnings from an office or employment, including the basis of assessment and the shift from the earnings basis to the receipts basis from 2018 onwards.

• Income tax under Schedule E is charged annually on all salaries, fees, wages, perquisites and other profits from an office, employment, annuity, pension or stipend, and is computed on the total amount of such payments for the year of assessment.
• From the tax year 2018 onwards, emoluments subject to PAYE are generally taxed on the receipts basis — that is, on the amount actually paid to the individual in the year of assessment, rather than on the amount earned in that year.
• The receipts basis does not apply to emoluments paid to proprietary directors (as defined in section 472) or to emoluments in respect of which a PAYE exclusion order has been issued under section 984(1).
• Special rules apply where emoluments relate to a year in which the office or employment was not yet held or is no longer held, and where emoluments are due to a person who has died before payment is made.