Section 867 | Provisions supplementing section 866

(1)For the purposes of section 866 a debit in respect of employees' remuneration recognised for accounting purposes includes an amount reserved in the accounts of an employer with a view to its becoming employees' remuneration.

(2)For the purposes of section 866 it does not matter if the debit is in respect of—

(a)particular employments, or

(b)employments generally.

(3)Any adjustment required by section 866 of an accounting debit that is partly referable to an amount to which that section applies and partly to other matters must be made on a just and reasonable basis.

(4)In making a calculation for tax purposes that has to be made before the end of the 9 month period mentioned in section 866(2), it must be assumed that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period.

(5)But if the remuneration is subsequently paid before the end of the period, nothing in subsection (4) prevents the calculation being revised and any tax return being amended accordingly.

(6)For the purposes of section 866 and this section, remuneration is paid when it—

(a)is treated as received by an employee for the purposes of ITEPA 2003 by section 18 or 19 of that Act (receipt of money and non-money earnings), or

(b)would be so treated if it were not exempt income.

(7)In section 866 and this section—

“employee” includes an office-holder and so “employment” includes an office, and

“remuneration” means an amount which is or is treated as earnings for the purposes of ITEPA 2003.