Supporting Guidance: employer compliance: guidance by subject: settlement: tax relief for amount included in a Class 6 settlement
In a settlement letter you should
tell the employer that the
- share of duties and NIC that they pay in the settlement will normally be allowable as a deduction
- whether a deduction is allowable and its allocation to a particular period of accounts is a matter for the IT/CT caseworker to decide (BIM47090).
Where penalties or interest are included in the settlement
- make it clear that these are not allowable as a deduction.