Much expenditure caught by ICTA88/S577A (1) and (1A) will be deducted in the accounts for the period in which it is paid. But sometimes a provision will be made in an earlier account for an accrual in respect of a payment that is made after the end of that account. The deduction is still caught as it is a deduction ’for any expenditure incurred in making a payment' to which subsection (1) applies. The time when deductions should be allowed for tax purposes is discussed at BIM42200 onwards.
