Part 2Employment income: charge to tax
Chapter 8Workers' services provided through intermediaries to small clients
The deemed employment payment
56Application of Income Tax Acts in relation to deemed employment
(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.
F1(4)
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F1(5)
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(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, F2 and
(b)
the services in question are provided in the United Kingdom, F3...
F3(c)
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the intermediary is treated as having a place of business in the United Kingdom, whether or not it in fact does so.
F4(8)
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