Earnings' for NIC purposes is defined1 as including any remuneration or profit derived from an employment ('earner' being construed accordingly). This definition of 'earnings' is limited (ie the definition of 'employment' is a case law rather than a statutory test, as outlined in Division E4.2). Therefore additional reference must be made to case law and HMRC guidance in cases of doubt. As outlined in E4.205, it is rare for an engagement not to have the same income tax and NIC treatment (whether employed or self-employed), with exceptions to this rule dependent on specific published HMRC practice or regulation (see for examples, E4.229—E4.242).
Income tax and NIC on employment earnings—summary of main similarities and differences
Assuming the individual is in employment; although the methods by which the duties of employment income tax and NIC are calculated differ materially (see Division E4.11), whether a particular payment or benefit etc counts as employment income tends to be very similar for both tax and NIC purposes. Although there are a few exceptions
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