Section 1236 — Corporation Tax Act 2009: Payroll deduction schemes

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.