CREC071800 - Expenditure credit redemption: Step 6 and payment

S1179CC CTA 2009 

Any amount remaining after Step 5 is payable by HMRC to the company, provided certain conditions are met. 

HMRC does not have to pay out any amount at Step 6 if the company is in administration or liquidation at the time it submits its claim to the Audio-Visual Expenditure Credit (AVEC) or Video Games Expenditure Credit (VGEC). 

HMRC also does not have to pay any Step 6 amount if: 

  • The company has an outstanding liability under PAYE regulations. 

  • The company has an outstanding liability in respect of Class 1 national insurance contributions (NICs). 

  • The company has an outstanding liability under section 966 of the Income Tax Act 2007 (withholding tax for visiting performers). 

These rules only cover outstanding liabilities for payment periods ending in the accounting period to which the AVEC/VGEC claim relates. 

In these scenarios, HMRC may decide to make a payment of some or all of the amount due, on a provisional basis, if appropriate. Once the company has settled any outstanding liabilities, the full amount at Step 6 can be paid out to it. 

HMRC can also delay payment at Step 6 if an enquiry is opened into the company’s tax return, pending the outcome of the enquiry. Again, HMRC may decide to make a provisional payment of some or all of the amount due at Step 6, if appropriate.