Corporation Tax Act 2009 section 1295

Profits calculated before end of 9 month period

Section 1295 explains how to handle deductions for employee benefit contributions when a company calculates its profits and submits its corporation tax return before the 9-month deadline has expired.

• This section applies where a company calculates its taxable profits before the end of the 9-month period allowed for qualifying employee benefit contributions to be made
• When calculating profits early, the company must assume that any benefits, expenses or contributions not yet provided, paid or made at that point will not be provided, paid or made before the 9-month deadline
• This means the company cannot claim a deduction for contributions it intends to make but has not yet actually made at the time it prepares its return
• If the contributions are subsequently provided, paid or made before the 9-month period ends, the company may revise its calculation and amend its tax return to claim the deduction