Section 1131A — Corporation Tax Act 2009: Sections 1129 and 1131: secondary Class 1 NICS paid by company

Sections 1129 and 1131: secondary Class 1 NICS paid by company 1131A 1 This section applies if—

a a company makes a staff provision payment, b the company is treated as making a payment of deemed direct earnings the amount of which is calculated by reference to the amount of the staff provision payment, and c the company pays a secondary Class 1 national insurance contribution in respect of the payment of deemed direct earnings.

2 In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) or section 1131(2) the amount of the staff payment provision is to be treated as increased by the amount of the contribution.

3 In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) the aggregate of the relevant expenditure of each staff controller is to be treated as increased by the amount of the contribution.

4 But subsection (2) does not apply to the extent that the expenditure incurred by the company in paying the contribution is met directly or indirectly by a staff controller. 5 “ A payment of deemed direct earning ” means a payment the company is treated as making by reason of regulation 14 of the Social Security Contributions (Intermediaries) Regulations 2000 or regulation 14 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.