Corporation Tax Act 2009 section 1302

Social security contributions

Section 1302 prevents companies from claiming a corporation tax deduction for most types of social security contributions, while preserving the deductibility of employer contributions.

• No corporation tax deduction is allowed for social security contributions paid under the Social Security Contributions and Benefits Act 1992 (or its Northern Ireland equivalent)
• Employer contributions are exempt from this prohibition — these are secondary Class 1, Class 1A, and Class 1B contributions
• Secondary Class 1 contributions are the employer's share of National Insurance on earnings; Class 1A relates to benefits in kind; Class 1B relates to items included in a PAYE Settlement Agreement
• The prohibition does not apply when calculating income from holding an office, as separate income tax rules apply in that situation