Corporation Tax Act 2009 section 1179CH

No credit payable if certain tax matters outstanding

Section 1179CH provides that HMRC can withhold payment of an audio-visual expenditure credit where the company has an open tax enquiry or outstanding PAYE, national insurance, or visiting performer tax obligations.

• Where HMRC has opened an enquiry into the company's tax return for the relevant accounting period, any expenditure credit payment due at step 6 of the credit calculation does not have to be paid, though HMRC may make a provisional payment of whatever amount they consider appropriate.
• Where the company has failed to pay amounts due under PAYE regulations, in respect of Class 1 national insurance contributions, or under the visiting performers rules, for payment periods ending in the accounting period, the expenditure credit payment does not have to be made, though HMRC may pay whatever amount they see fit.
• For PAYE and national insurance purposes, a payment period is the period ending on the 5th of each month for which the company must account to HMRC for income tax and national insurance contributions.
• For visiting performers, a payment period is the period for which the company is required to make a return under the visiting performers regulations in section 969(1)(b) of the Income Tax Act 2007.