Section 72 — Corporation Tax Act 2009: Payroll deduction schemes: contributions to agents' expenses

Payroll deduction schemes: contributions to agents' expenses 72 1 This section applies if—

a a company carrying on a trade (“ 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 In calculating the profits of the employer's trade, a deduction is allowed for expenses 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.

3 In this section “ approved agent ” and “ approved scheme ” have the same meaning as in section 714 of ITEPA 2003.