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HMRC internal manual

Company Taxation Manual

Corporation Tax: management expenses: charity agencies payroll giving scheme

ICTA88/S202 & ICTA88/S86A

Under ICTA88/S202 employees may authorise their employers to deduct gifts to charities from their pay. The employers must pay the gifts over to an agency approved by HMRC. The investment company employer’s own expenses of operating the scheme are treated as expenses of management under ICTA88/S86A.

Where an investment company employer (or a ‘company with investment business’ for periods starting on or after 1 April 2004) makes other voluntary payments to the approved agency, on or after 16 March 1993, to meet part of the agency expenses, these payments may be treated as an expense of management under ICTA88/S86A.