Part 2Employment income: charge to tax
F1CHAPTER 10Workers' services provided through intermediaries to public authorities or medium or large clients
61RApplication of Income Tax Acts in relation to deemed employment
(1)
The Income Tax Acts (in particular, Part 11 and PAYE regulations) apply in relation to the deemed direct payment as follows.
(2)
They apply as if—
(a)
the worker were employed by the person treated as making the deemed direct payment, and
(b)
the services were performed, or to be performed, by the worker in the course of performing the duties of that employment.
(3)
The deemed direct 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 direct payment, and
(b)
as taxable earnings from the employment for the purposes of section 232.
F2(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)
Where the intermediary is a partnership or unincorporated association, the deemed direct payment is treated as received by the worker in the worker's personal capacity and not as income of the partnership or association.
F3(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .