Part 2

Employment income: charge to tax
Chapter 8

Workers' services provided through intermediaries to small clients

Application of this Chapter

Scope of this Chapter
48
1
This Chapter has effect with respect to the provision of services through an intermediary in a case where the services are provided to a person who is not a public authority and who either—
a
qualifies as small for a tax year, or
b
does not have a UK connection for a tax year.
2
Nothing in this Chapter—
a
affects the operation of Chapter 7 of this Part,
aa
applies to services provided by a managed service company (within the meaning of Chapter 9 of this Part), or
b
applies to payments or transfers to which section 966(3) or (4) of ITA 2007 applies (visiting performers: duty to deduct and account for sums representing income tax) .
3
In this Chapter “
public authority
” has the same meaning as in Chapter 10 of this Part (see section 61L).
4
For provisions determining when a person qualifies as small for a tax year, see sections 60A to 60G.
5
For provision determining when a person has a UK connection for a tax year, see section 60I.

Engagements to which this Chapter applies
49
1
This Chapter applies where—
a
an individual (“the worker”) personally performs, or is under an obligation personally to perform, services for another person (“the client”),
aa
the client is not a public authority,
b
the services are provided not under a contract directly between the client and the worker but under arrangements involving a third party (“the intermediary”), and
c
the circumstances are such that—
i
if the services were provided under a contract directly between the client and the worker, the worker would be regarded for income tax purposes as an employee of the client or the holder of an office under the client, or
ii
the worker is an office-holder who holds that office under the client and the services relate to the office.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
The reference in subsection (1)(b) to a “third party” includes a partnership or unincorporated body of which the worker is a member.
4
The circumstances referred to in subsection (1)(c) include the terms on which the services are provided, having regard to the terms of the contracts forming part of the arrangements under which the services are provided.
4A
Holding office as statutory auditor of the client does not count as holding office under the client for the purposes of subsection (1)(c), and here “
statutory auditor
” means a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (see section 1210 of that Act).
5
In this Chapter “engagement to which this Chapter applies” means any such provision of services as is mentioned in subsection (1).

Worker treated as receiving earnings from employment
50
1
If, in the case of an engagement to which this Chapter applies, in any tax year—
za
the client qualifies as small or does not have a UK connection,
a
the conditions specified in section 51, 52 or 53 are met in relation to the intermediary, and
b
the worker, or an associate of the worker—
i
receives from the intermediary, directly or indirectly, a payment or benefit that is not employment income, or
ii
has rights which entitle, or which in any circumstances would entitle, the worker or associate to receive from the intermediary, directly or indirectly, any such payment or benefit,
the intermediary is treated as making to the worker, and the worker is treated as receiving, in that year a payment which is to be treated as earnings from an employment (“the deemed employment payment”).
2
A single payment is treated as made in respect of all engagements in relation to which the intermediary is treated as making a payment to the worker in the tax year.
3
The deemed employment payment is treated as made at the end of the tax year, unless section 57 applies (earlier date of deemed payment in certain cases).
4
In this Chapter “the relevant engagements”, in relation to a deemed employment payment, means the engagements mentioned in subsection (2).
5
The condition in paragraph (za) of subsection (1) is to be ignored if—
a
the client concerned is an individual, and
b
the services concerned are performed otherwise than for the purposes of the client's business.
6
For the purposes of paragraph (za) of subsection (1) the client is to be treated as not qualifying as small for the tax year concerned if the client is treated as medium or large for that tax year by reason of section 61TA(3)(a).

Conditions of liability where intermediary is a company
51
1
Where the intermediary is a company the conditions are that the intermediary is not an associated company of the client that falls within subsection (2) and either—
a
the worker has a material interest in the intermediary, or
b
the payment or benefit mentioned in section 50(1)(b)—
i
is received or receivable by the worker directly from the intermediary, and
ii
can reasonably be taken to represent remuneration for services provided by the worker to the client.
2
An associated company of the client falls within this subsection if it is such a company by reason of the intermediary and the client being under the control—
a
of the worker, or
b
of the worker and other persons.
3
A worker is treated as having a material interest in a company if—
a
the worker, alone or with one or more associates of the worker, or
b
an associate of the worker, with or without other such associates,
has a material interest in the company.
4
For this purpose a material interest means—
a
beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, more than 5% of the ordinary share capital of the company; or
b
possession of, or entitlement to acquire, rights entitling the holder to receive more than 5% of any distributions that may be made by the company; or
c
where the company is a close company, possession of, or entitlement to acquire, rights that would in the event of the winding up of the company, or in any other circumstances, entitle the holder to receive more than 5% of the assets that would then be available for distribution among the participators.
5
In subsection (4)(c) “participator” has the meaning given by section 454 of CTA 2010.

Conditions of liability where intermediary is a partnership
52
1
Where the intermediary is a partnership the conditions are as follows.
2
In relation to any payment or benefit received or receivable by the worker as a member of the partnership the conditions are—
a
that the worker, alone or with one or more relatives, is entitled to 60% or more of the profits of the partnership; or
b
that most of the profits of the partnership concerned derive from the provision of services under engagements to which one or other of this Chapter and Chapter 10 applies—
i
to a single client, or
ii
to a single client together with associates of that client; or
c
that under the profit sharing arrangements the income of any of the partners is based on the amount of income generated by that partner by the provision of services under engagements to which one or other of this Chapter and Chapter 10 applies.
In paragraph (a) “relative” means spouse or civil partner , parent or child or remoter relation in the direct line, or brother or sister.
3
In relation to any payment or benefit received or receivable by the worker otherwise than as a member of the partnership, the conditions are that the payment or benefit—
a
is received or receivable by the worker directly from the intermediary, and
b
can reasonably be taken to represent remuneration for services provided by the worker to the client.

Conditions of liability where intermediary is an individual
53
Where the intermediary is an individual the conditions are that the payment or benefit—
a
is received or receivable by the worker directly from the intermediary, and
b
can reasonably be taken to represent remuneration for services provided by the worker to the client.

The deemed employment payment

Calculation of deemed employment payment
54
1
The amount of the deemed employment payment for a tax year (“the year”) is the amount resulting from the following steps—
Step 1
Find (applying section 55) the total amount of all payments and benefits received by the intermediary in the year in respect of the relevant engagements, and reduce that amount by 5%.
Step 2
Add (applying that section) the amount of any payments and benefits received by the worker in the year in respect of the relevant engagements, otherwise than from the intermediary, that—
a
are not chargeable to income tax as employment income, and
b
would be so chargeable if the worker were employed by the client.
Step 3
Deduct (applying Chapters 1 to 5 of Part 5) the amount of any expenses met in the year by the intermediary that would have been deductible from the taxable earnings from the employment if—
a
the worker had been employed by the client, and
b
the expenses had been met by the worker out of those earnings.
If the result at this or any later point is nil or a negative amount, there is no deemed employment payment.
Step 4
Deduct the amount of any capital allowances in respect of expenditure incurred by the intermediary that could have been deducted from employment income under section 262 of CAA 2001 (employments and offices) if the worker had been employed by the client and had incurred the expenditure.
Step 5
Deduct any contributions made in the year for the benefit of the worker by the intermediary to a registered pension scheme that if made by an employer for the benefit of an employee would not be chargeable to income tax as income of the employee.
This does not apply to excess contributions made and later repaid.
Step 6
Deduct the amount of any employer’s national insurance contributions paid by the intermediary for the year in respect of the worker.
Step 7
Deduct the amount of any payments and benefits received in the year by the worker from the intermediary—
a
in respect of which the worker is chargeable to income tax as employment income, and
b
which do not represent items in respect of which a deduction was made under step 3.
Step 8
Assume that the result of step 7 represents an amount together with employer’s national insurance contributions on it, and deduct what (on that assumption) would be the amount of those contributions.
The result is the deemed employment payment.
1A
For the purposes of step 1 of subsection (1), any payment or benefit which is employment income of the worker by virtue of section 863G(4) of
ITTOIA
2005 (salaried members of limited liability partnerships: anti-avoidance) is to be ignored.
2
If section 61 of the Finance Act 2004 applies (sub-contractors in the construction industry: payments to be made under deduction), the intermediary is treated for the purposes of step 1 of subsection (1) as receiving the amount that would have been received had no deduction been made under that section.
3
In step 3 of subsection (1), the reference to expenses met by the intermediary includes—
a
expenses met by the worker and reimbursed by the intermediary, and
b
where the intermediary is a partnership and the worker is a member of the partnership, expenses met by the worker for and on behalf of the partnership.
4
In step 3 of subsection (1), the expenses deductible include the amount of any mileage allowance relief for the year which the worker would have been entitled to in respect of the use of a vehicle falling within subsection (5) if—
a
the worker had been employed by the client, and
b
the vehicle had not been a company vehicle (within the meaning of Chapter 2 of Part 4).
5
A vehicle falls within this subsection if—
a
it is provided by the intermediary for the worker, or
b
where the intermediary is a partnership and the worker is a member of the partnership, it is provided by the worker for the purposes of the business of the partnership.
6
Where, on the assumptions mentioned in paragraphs (a) and (b) of step 3 of subsection (1), the deductibility of the expenses is determined under sections 337 to 342 (travel expenses), the duties performed under the relevant engagements are treated as duties of a continuous employment with the intermediary.
7
In step 7 of subsection (1), the amounts deductible include any payments received in the year from the intermediary that—
a
are exempt from income tax by virtue of section 229 or 233 (mileage allowance payments and passenger payments), and
b
do not represent items in respect of which a deduction was made under step 3.
8
For the purposes of subsection (1) any necessary apportionment is to be made on a just and reasonable basis of amounts received by the intermediary that are referable—
a
to the services of more than one worker, or
b
partly to the services of the worker and partly to other matters.

Application of rules relating to earnings from employment
55
1
The following provisions apply in relation to the calculation of the deemed employment payment.
2
A “payment or benefit” means anything that, if received by an employee for performing the duties of an employment, would be earnings from the employment.
3
The amount of a payment or benefit is taken to be—
a
in the case of a payment or cash benefit, the amount received, and
b
in the case of a non-cash benefit, the cash equivalent of the benefit.
4
The cash equivalent of a non-cash benefit is taken to be—
a
the amount that would be earnings if the benefit were earnings from an employment, or
b
in the case of living accommodation, whichever is the greater of that amount and the cash equivalent determined in accordance with section 398(2).
5
A payment or benefit is treated as received—
a
in the case of a payment or cash benefit, when payment is made of or on account of the payment or benefit;
b
in the case of a non-cash benefit that is calculated by reference to a period within the tax year, at the end of that period;
c
in the case of a non-cash benefit that is not so calculated, when it would have been treated as received for the purposes of Chapter 4 or 5 of this Part (see section 19 or 32) if—
i
the worker had been an employee, and
ii
the benefit had been provided by reason of the employment.

Application of Income Tax Acts in relation to deemed employment
56
1
The Income Tax Acts (in particular, the PAYE provisions) apply in relation to the deemed employment payment as follows.
2
They apply as if—
a
the worker were employed by the intermediary, and
b
the relevant engagements were undertaken by the worker in the course of performing the duties of that employment.
3
The deemed employment payment is treated in particular—
a
as taxable earnings from the employment for the purpose of securing that any deductions under Chapters 2 to 6 of Part 5 do not exceed the deemed employment payment; and
b
as taxable earnings from the employment for the purposes of section 232.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Where the intermediary is a partnership or unincorporated association, the deemed employment payment is treated as received by the worker in the worker’s personal capacity and not as income of the partnership or association.
7
Where—
a
the worker is resident in the United Kingdom, and
b
the services in question are provided in the United Kingdom, ...
c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the intermediary is treated as having a place of business in the United Kingdom, whether or not it in fact does so.
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary provisions

Earlier date of deemed employment payment in certain cases
57
1
If in any tax year—
a
a deemed employment payment is treated as made, and
b
before the date on which the payment would be treated as made under section 50(2) any relevant event (as defined below) occurs in relation to the intermediary,
the deemed employment payment for that year is treated as having been made immediately before that event or, if there is more than one, immediately before the first of them.
2
Where the intermediary is a company the following are relevant events—
a
the company ceasing to trade;
b
where the worker is a member of the company, the worker ceasing to be such a member;
c
where the worker holds an office with the company, the worker ceasing to hold such an office;
d
where the worker is employed by the company, the worker ceasing to be so employed.
3
Where the intermediary is a partnership the following are relevant events—
a
the dissolution of the partnership or the partnership ceasing to trade or a partner ceasing to act as such;
b
where the worker is employed by the partnership, the worker ceasing to be so employed.
4
Where the intermediary is an individual and the worker is employed by the intermediary, it is a relevant event if the worker ceases to be so employed.
5
The fact that the deemed employment payment is treated as made before the end of the tax year does not affect what receipts and other matters are taken into account in calculating its amount.

Relief in case of distributions by intermediary
58
1
A claim for relief may be made under this section where the intermediary—
a
is a company,
b
is treated as making a deemed employment payment in any tax year, and
c
either in that tax year (whether before or after that payment is treated as made), or in a subsequent tax year, makes a distribution (a “relevant distribution”).
2
A claim for relief under this section must be made—
a
by the intermediary by notice to an officer of Revenue and Customs , and
b
within 5 years after the 31st January following the tax year in which the distribution is made.
3
If on a claim being made an officer of Revenue and Customs is satisfied that relief should be given in order to avoid a double charge to tax, the officer must direct the giving of such relief by way of amending any assessment, by discharge or repayment of tax, or otherwise, as appears to the officer appropriate.
4
Relief under this section is given by setting the amount of the deemed employment payment against the relevant distribution so as to reduce the distribution.
5
In the case of more than one relevant distribution, an officer of Revenue and Customs must exercise the power conferred by this section so as to secure that so far as practicable relief is given by setting the amount of a deemed employment payment—
a
against relevant distributions of the same tax year before those of other years,
b
against relevant distributions received by the worker before those received by another person, and
c
against relevant distributions of earlier years before those of later years.
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions applicable to multiple intermediaries
59
1
The provisions of this section apply where in the case of an engagement to which this Chapter applies the arrangements involve more than one relevant intermediary.
2
All relevant intermediaries in relation to the engagement are jointly and severally liable, subject to subsection (3), to account for any amount required under the PAYE provisions to be deducted from a deemed employment payment treated as made by any of them—
a
in respect of that engagement, or
b
in respect of that engagement together with other engagements.
3
An intermediary is not so liable if it has not received any payment or benefit in respect of that engagement or any such other engagement as is mentioned in subsection (2)(b).
4
Subsection (5) applies where a payment or benefit has been made or provided, directly or indirectly, from one relevant intermediary to another in respect of the engagement.
5
In that case, the amount taken into account in relation to any intermediary in step 1 or step 2 of section 54(1) is reduced to such extent as is necessary to avoid double-counting having regard to the amount so taken into account in relation to any other intermediary.
6
Except as provided by subsections (2) to (5), the provisions of this Chapter apply separately in relation to each relevant intermediary.
7
In this section “relevant intermediary” means an intermediary in relation to which the conditions specified in section 51, 52 or 53 are met.

Meaning of “associate”
60
1
In this Chapter “associate”—
a
in relation to an individual, has the meaning given by section 448 of CTA 2010, subject to the following provisions of this section;
b
in relation to a company, means a person connected with the company; and
c
in relation to a partnership, means any associate of a member of the partnership.
2
Where an individual has an interest in shares or obligations of the company as a beneficiary of an employee benefit trust, the trustees are not regarded as associates of the individual by reason only of that interest except in the following circumstances.
3
The exception is where—
a
the individual, either alone or with any one or more associates of the individual, or
b
any associate of the individual, with or without other such associates,
has at any time on or after 14th March 1989 been the beneficial owner of, or able (directly or through the medium of other companies or by any other indirect means) to control more than 5% of the ordinary share capital of the company.
4
In subsection (3) “associate” does not include the trustees of an employee benefit trust as a result only of the individual’s having an interest in shares or obligations of the trust.
5
Sections 549 to 554 (attribution of interests in companies to beneficiaries of employee benefit trusts) apply for the purposes of subsection (3) as they apply for the purposes of the provisions listed in section 549(2).
6
In this section “employee benefit trust” has the meaning given by sections 550 and 551.

When a person qualifies as small for a tax year

When a company qualifies as small for a tax year
60A
1
For the purposes of this Chapter, a company qualifies as small for a tax year if one of the following conditions is met (but this is subject to section 60C).
2
The first condition is that the company's first financial year is not relevant to the tax year.
3
The second condition is that the small companies regime applies to the company for its last financial year that is relevant to the tax year.
4
For the purposes of this section, a financial year of a company is “relevant to” a tax year if the period for filing the company's accounts and reports for the financial year ends before the beginning of the tax year.
5
Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.

When a company qualifies as small for a tax year: joint ventures
60B
1
This section applies when determining for the purposes of section 60A(3) whether the small companies regime applies to a company for a financial year in a case where—
a
at the end of the financial year the company is jointly controlled by two or more other persons, and
b
one or more of those other persons are undertakings (“the joint venturer undertakings”).
2
If the company is a parent company, the joint venturer undertakings are to be treated as members of the group headed by the company.
3
If the company is not a parent company, the company and the joint venturer undertakings are to be treated as constituting a group of which the company is the parent company.
4
In this section the expression “
jointly controlled
” is to be read in accordance with those provisions of international accounting standards which relate to joint ventures.
5
Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.

When a company qualifies as small for a tax year: subsidiaries
60C
1
A company does not qualify as small for a tax year by reason of the condition in section 60A(3) being met if—
a
the company is a member of a group at the end of its last financial year that is relevant to the tax year,
b
the company is not the parent undertaking of that group at the end of that financial year, and
c
the undertaking that is the parent undertaking of that group at that time does not qualify as small in relation to its last financial year that is relevant to the tax year.
2
Where the parent undertaking mentioned in subsection (1)(c) is not a company, sections 382 and 383 of the Companies Act 2006 have effect for determining whether the parent undertaking qualifies as small in relation to its last financial year that is relevant to the tax year as if references in those sections to a company and a parent company included references to an undertaking and a parent undertaking.
3
For the purposes of subsections (1)(c) and (2) a financial year of an undertaking that is not a company is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year.
4
For the purposes of this section, a financial year of a company is “relevant to” a tax year if the period for filing the company's accounts and reports for the financial year ends before the beginning of the tax year.
5
Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.

When a relevant undertaking qualifies as small for a tax year
60D
1
Sections 60A to 60C apply in relation to a relevant undertaking as they apply in relation to a company, subject to any necessary modifications.
2
In this section “
relevant undertaking
” means an undertaking in respect of which regulations have effect under—
a
section 15(a) of the Limited Liability Partnerships Act 2000,
b
section 1043 of the Companies Act 2006 (unregistered companies), or
c
section 1049 of the Companies Act 2006 (overseas companies).
3
Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.

When other undertakings qualify as small for a tax year
60E
1
An undertaking that is not a company or a relevant undertaking qualifies as small for a tax year if one of the following conditions is met.
2
The first condition is that the undertaking's first financial year is not relevant to the tax year.
3
The second condition is that the undertaking's turnover for its last financial year that is relevant to the tax year is not more than the amount for the time being specified in the second column of item 1 of the Table in section 382(3) of the Companies Act 2006.
4
For the purposes of this section a financial year of an undertaking is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year.
5
In this section—
- “
relevant undertaking
” has the meaning given by section 60D, and
- “
turnover
”, in relation to an undertaking, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts so derived.
6
Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.

When other persons qualify as small for a tax year
60F
1
For the purposes of this Chapter, a person who is not a company, relevant undertaking or other undertaking qualifies as small for a tax year if the person's turnover for the last calendar year before the tax year is not more than the amount for the time being specified in the second column of item 1 of the Table in section 382(3) of the Companies Act 2006.
2
In this section—
- “
company
” and “
undertaking
” have the same meaning as in the Companies Act 2006,
- “
relevant undertaking
” has the meaning given by section 60D, and
- “
turnover
”, in relation to a person, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts so derived.

Sections 60A to 60F: connected persons
60G
1
This section applies where—
a
it is necessary for the purposes of determining whether a person qualifies as small for a tax year (“the tax year concerned”) to first determine the person's turnover for a financial year or calendar year (“the assessment year”), and
b
at the end of the assessment year the person is connected with one or more other persons (“the connected persons”).
2
For the purposes of determining whether the person qualifies as small for the tax year concerned the person's turnover for the assessment year is to be taken to be the sum of—
a
the person's turnover for the assessment year, and
b
the relevant turnover of each of the connected persons.
3
In subsection (2)(b) “the relevant turnover” of a connected person means—
a
in a case where the connected person is a company, relevant undertaking or other undertaking, its turnover for its last financial year that is relevant to the tax year concerned, and
b
in a case where the connected person is not a company, relevant undertaking or other undertaking, the turnover of the connected person for the last calendar year ending before the tax year concerned.
4
For the purposes of subsection (3)(a)—
a
a financial year of a company or relevant undertaking is relevant to the tax year concerned if the period for filing accounts and reports for the financial year ends before the beginning of the tax year concerned, and
b
a financial year of any other undertaking is relevant to the tax year concerned if it ends more than 9 months before the beginning of the tax year concerned.
5
In a case where—
a
the person mentioned in subsection (1)(a) is a company or relevant undertaking, and
b
at the end of the assessment period the person is a member of a group,
the person is to be treated for the purposes of this section as not being connected with any person that is a member of that group.
6
In this section—
- “
turnover
”, in relation to a person, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts so derived, and
- “
relevant undertaking
” has the meaning given by section 60D.
7
For provision determining whether one person is connected with another, see section 718 (connected persons).
8
Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act.

Duty on client to state whether it qualifies as small for a tax year
60H
1
This section applies if, in the case of an engagement that meets conditions (a) to (b) in section 49(1), the client receives from the client's agent or the worker a request to state whether in the client's opinion the client qualifies as small for a tax year specified in the request.
2
The client must provide to the person who made the request a statement as to whether in the client's opinion the client qualifies as small for the tax year specified in the request.
3
If the client fails to provide the statement by the time mentioned in subsection (4) the duty to do so is enforceable by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
4
The time is whichever is the later of—
a
the end of the period of 45 days beginning with the date the client receives the request, and
b
the beginning of the period of 45 days ending with the start of the tax year specified in the request.
5
In this section “
the client's agent
” means a person with whom the client entered into a contract as part of the arrangements mentioned in paragraph (b) of section 49(1).

When a person has a UK connection

When a person has a UK connection for a tax year
60I
1
For the purposes of this Chapter, a person has a UK connection for a tax year if (and only if) immediately before the beginning of that tax year the person—
a
is resident in the United Kingdom, or
b
has a permanent establishment in the United Kingdom.
2
In this section “permanent establishment”—
a
in relation to a company, is to be read (by virtue of section 1007A of ITA 2007) in accordance with Chapter 2 of Part 24 of CTA 2010, and
b
in relation to any other person, is to be read in accordance with that Chapter but as if references in that Chapter to a company were references to that person.

Interpretation

Interpretation
61
1
In this Chapter—
- “associate” has the meaning given by section 60;
- “associated company” has the meaning given by section 449 of CTA 2010;
- “business” means any trade, profession or vocation and includes a UK property business within the meaning of Chapter 2 of Part 3 of ITTOIA 2005 or Chapter 2 of Part 4 of CTA 2009;
- “company” (except in sections 60A to 60G) means a body corporate or unincorporated association, and does not include a partnership;
- “employer’s national insurance contributions” means secondary Class 1 or Class 1A national insurance contributions;
- “
engagement to which Chapter 10 applies
” has the meaning given by section 61M(5);
- “engagement to which this Chapter applies” has the meaning given by section 49(5);
- “national insurance contributions” means contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992;
- “PAYE provisions” means the provisions of Part 11 or PAYE regulations;
- “the relevant engagements” has the meaning given by section 50(4).
2
References in this Chapter to payments or benefits received or receivable from a partnership or unincorporated association include payments or benefits to which a person is or may be entitled in the person’s capacity as a member of the partnership or association.
3
For the purposes of this Chapter—
a
anything done by or in relation to an associate of an intermediary is treated as done by or in relation to the intermediary, and
b
a payment or other benefit provided to a member of an individual’s family or household is treated as provided to the individual.
4
For the purposes of this Chapter, two people living together as if they were a married couple or civil partners are treated as if they were married to, or civil partners of, each other.
Words in s. 61(1) inserted (with effect in accordance with Sch. 1 para. 15 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 5
Words in s. 61(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 382 (with Sch. 2)
Pt. 2 Ch. 8 heading substituted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 2, 24 (with Sch. 1 paras. 30-34)
Words in s. 56(7)(a) inserted (with effect in accordance with s. 136(4) of the amending Act) by Finance Act 2003 (c. 14), s. 136(3)(b)(i)
Words in s. 61(1) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 549 (with Sch. 2 Pts. 1, 2)
Words in s. 61(1) inserted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 586 (with Sch. 2)
Words in s. 52(2)(c) substituted (with effect in accordance with Sch. 1 para. 15 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 4
S. 54(1) applied in part (with effect in accordance with reg. 1(2) of the amending S.I.) by The Pension Protection Fund (Tax) (2005-06) Regulations 2005 (S.I. 2005/1907), regs. 1(1), 13
S. 54(1) applied in part (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 39
Words in s. 49(1)(a) substituted (with effect in accordance with s. 136(4) of the amending Act) by Finance Act 2003 (c. 14), s. 136(2)
Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
S. 56(7)(c) and word repealed (with effect in accordance with s. 136(4) of the amending Act) by Finance Act 2003 (c. 14), s. 136(3)(b)(ii), Sch. 43 Pt. 3(1)
S. 60I applied (with effect in accordance with Sch. 1 para. 27 of the amending Act) by 2004 c. 12, s. 60(3C) (as inserted by Finance Act 2020 (c. 14), Sch. 1 para. 20 (with Sch. 1 paras. 30-34))
Words in s. 52(2) substituted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 138
S. 49(1)(c) substituted (with effect in accordance with s. 22(2) of the amending Act) by Finance Act 2013 (c. 29), s. 22(1)
Ss. 60A-60I and cross-headings inserted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 5, 24 (with Sch. 1 paras. 30-34)
Pt. 2 applied (E.W.S.) (31.3.2017) by The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 (S.I. 2017/353), reg. 1(1), Sch. 1 para. 4(3) (with reg. 2(4)(5))
Words in s. 54(1) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 56 (with Sch. 36)
S. 48(3) inserted (with effect in accordance with Sch. 1 para. 15 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 2(b)
Words in s. 58(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(a); S.I. 2005/1126, art. 2(2)(h)
S. 50(1)(za) inserted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 4(2), 24 (with Sch. 1 paras. 30-34)
Words in s. 54(2) substituted (with effect in accordance with s. 77 of the amending Act) by Finance Act 2004 (c. 12), Sch. 12 para. 17(2)
S. 58(6) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 61(2)
S. 61(4) substituted for s. 61(4)(5) (2.12.2019) by The Civil Partnership (Opposite-sex Couples) Regulations 2019 (S.I. 2019/1458), reg. 1(2), Sch. 3 para. 25(2)
S. 48(2)(aa) substituted for word (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), s. 25(2), Sch. 3 para. 3
S. 49(4A) inserted (with effect in accordance with Sch. 1 para. 15 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 11
S. 50(5)(6) inserted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 4(3), 24 (with Sch. 1 paras. 30-34)
S. 56(8) repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3 (with Sch. 35 para. 57, Sch. 36)
Words in s. 61(1) inserted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 6, 24 (with Sch. 1 paras. 30-34)
Words in s. 60(1)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 381 (with Sch. 2)
S. 49(1)(aa) inserted (with effect in accordance with Sch. 1 para. 15 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 3
Words in s. 48(1) substituted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 3(2), 24 (with Sch. 1 paras. 30-34)
Word in s. 58(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 105; S.I. 2005/1126, art. 2(2)(h)
Words in s. 51(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 380 (with Sch. 2)
Words in s. 48(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 429 (with Sch. 2)
Pt. 2 applied (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 969(4)(a), 1329(1) (with Sch. 2 Pts. 1, 2)
S. 48(4)(5) inserted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 3(3), 24 (with Sch. 1 paras. 30-34)
Words in s. 52(2)(b) substituted (with effect in accordance with Sch. 1 para. 15 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 4
S. 49(2) repealed (with effect in accordance with s. 136(4) of the amending Act) by Finance Act 2003 (c. 14), s. 136(3)(a), Sch. 43 Pt. 3(1)
S. 61(4)(5) applied by S.I. 2000/727, reg 16 (as inserted (6.4.2017) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2017 (S.I. 2017/373), regs. 1, 2(13))
S. 54(1A) inserted (retrospective to 6.4.2014) by Finance Act 2014 (c. 26), Sch. 17 paras. 5, 6
S. 56(4)(5) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 14