Part 2

Employment income: charge to tax
CHAPTER 10

Workers' services provided through intermediaries to public authorities or medium or large clients

Application of Income Tax Acts in relation to deemed employment
61R
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.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 Ch. 10 inserted (with effect in accordance with Sch. 1 para. 16 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 9
S. 61R(7) omitted (with effect in accordance with Sch. 1 para. 25 of the amending Act) by virtue of Finance Act 2020 (c. 14), Sch. 1 para. 15 (with Sch. 1 paras. 30-34)
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)
Pt. 2 Ch. 10 heading substituted (with effect in accordance with Sch. 1 para. 25 of the amending Act) by Finance Act 2020 (c. 14), Sch. 1 para. 8 (with Sch. 1 paras. 30-34)
S. 61R(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