C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 5Trade profits: rules allowing deductions

Contributions to agents' expenses

72Payroll deduction schemes: contributions to agents' expenses

1

This section applies if—

a

a company carrying on a trade (“the employer”) is liable to make payments to an individual,

b

income tax falls to be deducted from those payments as a result of PAYE regulations, and

c

the employer withholds sums from those payments in accordance with an approved scheme and pays the sums to an approved agent.

2

In calculating the profits of the employer's trade, a deduction is allowed for expenses incurred by the employer in making a payment to the agent for expenses which—

a

have been incurred, or

b

are to be incurred,

by the agent in connection with the agent's functions under the scheme.

3

In this section “approved agent” and “approved scheme” have the same meaning as in section 714 of ITEPA 2003.