Commentary on Sections Overview Chapter 1: Restriction of deductions Section 1289: Unpaid remuneration: supplementary
3304.This section provides definitions and further explanation of the main rule in section 1288. It is based on section 43 of FA 1989. The corresponding rule for income tax is in section 37 of ITTOIA.
3305.Subsection (1) applies section 1288 to provisions made in the accounts for amounts that may become employees’ remuneration.
3306.Subsection (3) deals with the case in which the company submits its tax return before the end of the nine month limit in section 1288(2) and all or any of the remuneration is unpaid. The company must assume the remuneration will remain unpaid. If, subsequently, the remuneration is paid within the time limit the calculation can be adjusted and the return amended. See Change 68 in Annex 1.