tool

Employment Income Manual

The Employment Income Manual is HMRC’s online guidance on employment related tax rules.

What is the Employment Income Manual?

The Employment Income Manual (EIM) is an HMRC resource that explains how employment income should be taxed. It provides detailed guidance for employers, payroll teams and tax professionals. 

The manual covers topics such as benefits, expenses, PAYE rules, deductions and reporting requirements. It helps organisations understand their obligations and apply tax rules correctly. 

Because tax rules change frequently, the EIM is updated regularly to reflect current legislation. 

Things to know

  • The EIM is published and maintained by HMRC
  • It covers employment income, benefits, expenses and PAYE
  • It supports accurate payroll and tax compliance
  • Guidance is updated regularly
  • It is widely used by payroll and tax professionals

FAQs

Who uses the Employment Income Manual?

It is used by payroll teams, HR professionals, accountants and tax advisers who need guidance on how employment income is taxed in the UK.

What topics does the Employment Income Manual cover?

It includes guidance on PAYE, benefits, expenses and deductions, helping employers understand how to apply tax rules in different scenarios.

Is the Employment Income Manual legally binding?

No. It is guidance rather than law, but it reflects HMRC’s interpretation of tax rules and is widely relied on in practice.

How often is the Employment Income Manual updated?

It is updated regularly to reflect changes in tax legislation and HMRC policy.

Payroll outsourcing services

Our outsourced payroll services are flexible, automated and scalable, ready to adapt to your business needs, big and small. You can feel safe in the knowledge that everything is ticking over beautifully and fully HMRC compliant.

Discover ADP payroll outsourcing services 

Related resources

GUIDE

Payroll compliance guide

FAQ

Definition of payroll
deductions in the UK

FAQ

How to Process Payroll?