ECH22045 - Settlement: Tax Relief for Amount Included in Class 6 Settlement
In a settlement letter
the ECO should
- tell the employer that the
- duties and NIC included in the settlement will normally be allowable as a deduction
- allowability of such a deduction and its allocation to a particular period of accounts is a matter for the Business Accounts Inspector to decide.
Where penalties or interest are included in the settlement
- make it clear that these are not allowable as a deduction.
