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Income Tax (Earnings and Pensions) Act 2003

Section 52: Conditions of liability where intermediary is a partnership

212.As suggested by the heading, this section is only of interest if the intermediary is a partnership. It derives from paragraph 4.

213.Subsection (2) sets out the situations where liability may arise because the worker has a say in the operation of the partnership, whether that is because:

  • the worker (alone or with relatives) is entitled to more than 60% of the profits of the partnership;

  • most of the profits of the partnership come from one client (or that client’s associates) in respect of services provided by the worker to which this Chapter applies; or

  • the worker is a member of the partnership whose share of partnership profits is based on the amount of income generated by his/her provision of services to which this Chapter applies.

214.The alternative test set out in subsection (3) is designed to catch the cases where the worker is not paid as a member of the intermediary partnership, but rather as an individual. This condition looks at what is actually going on between the worker, the intermediary and the client. It is satisfied if the worker receives (or is entitled to receive) direct from the intermediary something that can reasonably be taken to be remuneration for services provided to the client.

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