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Use the Unpaid remuneration template to apply the rule that employee remuneration is only deductible for corporation tax if it is paid within nine months of the end of the period of account (Chapter 1 of Part 20, CTA 2009 — s1288/s1289). The template disallows remuneration that is charged in the accounts but not paid in time, and allows it in the later period when it is eventually paid.

Table of contents 

When should I use this template?

Use it where the accounts include accrued remuneration — for example bonuses — that has not been paid by the balance sheet date. If the amount is paid within nine months of the period end, it remains deductible; if not, it must be added back until paid.

Before you start

A business type must be selected in the Business type section of the Return information template. If none is selected, the template shows a warning and cannot calculate.

How the analysis works

For each item you complete the columns:

  • Description – the remuneration item.
  • Liability for tax b/f – amounts brought forward that were disallowed in an earlier period.
  • P&L / OCI charge / (credit) – the amount charged in the accounts this period.
  • Paid within 9 months of the Balance Sheet date – the amount paid within the nine-month window.
  • Other – any other movement.
  • Liability for tax c/f – the amount still unpaid (and therefore still disallowed), carried forward.

Amounts not paid within nine months are added back; when a brought-forward amount is later paid, it becomes deductible in that period.

What flows through to the rest of Corporation Tax?

The disallowed (unpaid) amount is added back to profit, and amounts paid — whether in the nine-month window or on later payment of a brought-forward balance — are relieved. This feeds the adjustment to profit for the relevant business type.

What rolls forward next year?

The Liability for tax c/f rolls forward to become next year's brought-forward figure, so that when the remuneration is eventually paid the deduction is picked up. Current-period fields clear for the new year.

Where the data comes from

  • The amounts are entered here (or brought forward from an earlier period as a disallowed liability); the charge is reconciled against the accounts.
  • The business type comes from Return information, and the adjustment flows out to the adjustment of profit.

Frequently asked questions

What is the nine-month rule?

Employee remuneration is only deductible in the period it is charged if paid within nine months of the end of the period of account. Otherwise the deduction is deferred until the period of payment.

What happens to amounts paid late?

They are relieved in the period in which they are paid, via the brought-forward liability.