Corporation Tax Act 2009 section 1058B

Total amount of company's PAYE and NIC liabilities

Section 1058B explains how to calculate a company's total PAYE and national insurance contributions liabilities for a given payment period.

• A company's total PAYE and NIC liability for a payment period is the sum of two amounts: Amount A (income tax under PAYE) and Amount B (Class 1 NICs).
• Amount A is the income tax the company is required to pay to HMRC for the payment period under the PAYE regulations.
• Amount B is the Class 1 national insurance contributions the company is required to pay to HMRC for the payment period.
• Certain deductions must be excluded from the calculation: child tax credit and working tax credit deductions are ignored for both amounts, and statutory pay recoveries (maternity, adoption, paternity, shared parental and parental bereavement pay) are also ignored when calculating Amount B.