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Free childcare- do gratuities count toward the minimum income?
thanks
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What counts as employed income?
Any earnings that a person receives from any employment under a contract of service of any office, including an elected office, counts towards the threshold.
It is gross income that counts for TFC purposes - before any deductions for tax, national insurance or pension contributions.
Earnings are given the same meaning as in Section 62 ITEPA 2003. This includes:
- Any salary, wages or fee
- Any gratuity or other profit or benefit of any kind obtained by the employee if it is money or money's worth
- Anything else that constitutes an emolument of the employment
The last two bullet points ensure that all money payments that are similar to earnings are included - that includes bonuses, commissions, tips, overtime pay. It also includes non-cash earnings such as benefits in kind, for example, a company car or medical insurance.
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Thanks for your reply, very helpful. We are pleased!0
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