Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Chapter BIM44635

Document Cited authorities 1 Cited in Related
Vincent
Published date22 November 2013
Record NumberBIM44635
CourtHM Revenue & Customs

S36, S38 Income Tax (Trading and Other Income) Act 2005, S1288, S1290 Corporation Tax Act 2009

There are provisions which determine when a deduction for employees’ remuneration is to be given in computing the employer’s taxable profits. General guidance on the rules (the ‘unpaid remuneration’ rules) is at BIM47130.

The deductions in an employer’s accounts which may be affected by the unpaid remuneration rules are those ’in respect of employees’ remuneration’. This includes an amount for which a provision is made in the accounts with a view to its becoming employees’ remuneration.

The rules defer the deduction for employees’ remuneration which remains unpaid nine months after the end of the period of the accounts in which it is deducted in accordance with generally accepted accounting practice. If the remuneration for which a deduction has been so disallowed is paid in a later period, a deduction is given in computing the employer’s taxable profits for the later period.

The interaction of the unpaid remuneration rules with the employee benefit contribution legislation may need to be considered if:

  • a provision for employees’ remuneration in a company’s accounts has been disallowed under the unpaid remuneration rules because there was...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT