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HMRC internal manual

Business Income Manual

Specific deductions: staffing costs: timing of deduction: remuneration affected

S36, S37 Income Tax (Trading and Other Income) Act 2005, S1288, S1289 Corporation Tax Act 2009

For the purposes of the nine-month rule at BIM47130, an amount charged in the accounts in respect of employees’ remuneration includes the following.

  • Remuneration of office-holders.
  • Remuneration allocated to particular offices or employments.
  • Remuneration allocated, not to a particular office or employment, but generally in respect of all or a particular group of offices or employments. An example of this is a global sum to be paid as a bonus to all, or some class of, employees but the precise allocation of which to individual employees had not, at the accounting date, been decided.
  • Amounts reserved in accounts, by way of an accounting provision, in respect of remuneration which, although for that period of account, does not become payable to the employee or office-holder until the happening of some future event. An example of this is a bonus due for a particular period of account which only becomes payable on condition that the employee is still working for the employer in, say, five years’ time.

Employee benefit trusts

For the timing of deductions for contributions by employers to an employee benefit trust, see BIM44500 onwards.