Part 2

Employment income: charge to tax
Chapter 8

Workers' services provided through intermediaries to small clients

When a person qualifies as small for a tax year

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.
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)
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))
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)