BIM47090 | specific deductions: staffing costs: employer compliance settlements

This section previously dealt with the situation where a settlement is made with an employer or contractor for tax due under PAYE or CIS tax (tax on payments to subcontractors in the building industry).

This concession has been withdrawn for employer compliance settlements entered into after 30th September 2019 as it departs from the statutory treatment that the timing of deductions must follow generally accepted accounting practice, subject to any tax law that overrides this.

VAT settlements

For guidance on deductions for VAT settlements made, see BIM31615 onwards.