Corporation Tax Act 2009 section 1249

Unpaid remuneration

Section 1249, read with paragraph 133 of Schedule 2, sets out transitional rules for how unpaid employees' remuneration is treated when calculating corporation tax deductions, particularly where funds are held by an intermediary on behalf of employees.

• Unpaid remuneration rules apply to amounts charged in the accounts for employees' pay that have not yet been paid out
• For accounting periods ending before 27 November 2002, amounts held by an intermediary intended to become employees' remuneration count as remuneration charged in the accounts
• For accounting periods ending on or after 27 November 2002, employee benefit contributions made before that date and held by an intermediary with a view to becoming employees' remuneration are also included
• The distinction between the two periods reflects a change in the treatment of employee benefit contributions introduced from 27 November 2002