Part 16

Companies with investment business
Chapter 3

Amounts treated as expenses of management

Contributions to agents' expenses

Payroll deduction schemes
1236
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.