Part 2

Employment income: charge to tax
Chapter 8

Workers' services provided through intermediaries to small clients

Application of this Chapter

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.
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. 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
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
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))
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)
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