Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Earnings definition

What does Earnings mean? In corporate and finance practice, earnings means the profit attributable to ordinary shareholders for a reporting period. It is the company’s profit after tax, after finance costs (including interest paid to bondholders) and after any preference dividends. Earnings are commonly shown on a per‑share basis as earnings per share (EPS): profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period. Example: £2 million earnings and 10 million shares gives EPS of 20p. Earnings is a descriptive accounting and market term, not a statutory one. For listed companies in the...

UK taxation of employment income: general earnings (ITEPA 2003 s 62), specific employment income, jurisdictional scope, timing, directors and NICs; includes 2025 non-dom/remittance basis reforms

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Practice notes

STOP PRESS: Abolition of non-dom regime and remittance basis of taxation from 2025–26

The Finance ACT 2025 has scrapped the remittance basis and, from 6 April 2025, substitutes a residence-based system. The reforms bring in a new Foreign Income and Gains (FIG) regime and revise the rules for overseas workday relief. For detailed guidance on these updates, refer to Practice Note: The abolition of the remittance basis of taxation from 2025–26. The UK operates a comprehensive framework for taxing employment income. This Practice Note explains the core income tax principles for employment income and the way they attach to Earnings. Keep in mind that any form of remuneration connected to an individual’s employment can give rise to income tax and National insurance contributions (NICs) liabilities (for NICs, potentially affecting both Employer and employee), together with possible apprenticeship levy costs for the employer. In addition, intricate provisions govern the withholding and collection of income tax on employment income and employee NICs under the Pay As You Earn (PAYE) system. These requirements are detailed and wide-ranging for both tax and NICs purposes.

What is employment income?

Employment income within the charge to income tax consists of:

general earnings, and
specific employment income...

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Web page updated on 22/05/2026

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