Section 1112D — Corporation Tax Act 2009: Total PAYE and NIC liabilities

Total PAYE and NIC liabilities 1112D 1 For the purposes of section 1112C , the total amount of a company’s PAYE and NIC liabilities for a payment period is the sum of amount A and amount B.

2 Amount A is the total amount of income tax for which the company is required to account to an officer of Revenue and Customs under PAYE regulations for the period.

3 In calculating amount A, any deduction the company is authorised to make in respect of child tax credit or working tax credit is to be disregarded.

4 Amount B is the total amount of Class 1 national insurance contributions for which the company is required to account to an officer of Revenue and Customs for the accounting period.

5 In calculating amount B, any deduction the company is authorised to make in respect of any of the following is to be disregarded—

a statutory maternity pay, b statutory adoption pay, c statutory paternity pay, d statutory shared parental pay, e statutory parental bereavement pay;

f child tax credit, or g working tax credit.

6 Subsection (7) applies if—

a in determining under section 1112C the amount of a company’s relevant PAYE and NIC liabilities for a payment period, it is necessary to determine the total amount of another company’s PAYE and NIC liabilities for that period, and b that period falls within, but is shorter than, a payment period of that other company.

7 The amount produced by subsection (1) in its application to that other company is to be proportionately reduced.