Corporation Tax Act 2009

Contributions to agents' expenses

1236 Payroll deduction schemes

(1) This section applies if—

(a) a company with investment business (“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) Expenses falling within subsection (3) are treated for the purposes of Chapter 2 as expenses of management.

(3) Expenses fall within this subsection if they are 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.

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