ITEPA 2003, s. 710 deals with accounting for tax on notional payments. Notional payments are defined in ITEPA 2003, s. 687, 689 and 693 to 700. The definition includes certain payments made:-
- in a non-cash form readily convertible into cash, for example gold bars.
Section 710 and Income Tax (Pay As You Earn) Regulations 2003, reg. 62 make it clear that employers must account for any tax they cannot deduct from notional payments.
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