SolvedESM2425 | Umbrella companies legislation: Chapter 11 ITEPA 2003- relevant parties- examples
From HM Revenue & Customs · Employment Status Manual
Section 61Z Chapter 11, Part 2 ITEPA 2003
This page provides some basic examples of who is a relevant party in a labour supply chain and are therefore jointly and severally liable alongside the umbrella company. For further information about joint and several see ESM2420- joint and several.
Example 1
End client contracts with UK umbrella who contracts with the worker. The end client along with the UK umbrella will be relevant parties for the purpose of the measure.
Example 2
End client contracts with UK agency who then contracts with UK umbrella who contracts with the worker. The UK agency and the UK umbrella will be relevant parties for the purposes of the measure.
Example 3
End client contracts with the UK agency 1 who then contracts with UK agency 2. Agency 2 then contracts with the UK umbrella who contracts with the worker. The agency who holds the contract with the end client (UK agency 1) along with the UK umbrella will be relevant parties for the purposes of the measure.
Example 4
End client contracts with non-resident agency who then contracts with UK umbrella who contracts with the worker. The end client along with the UK umbrella will be relevant parties for the purposes of the measure.
Example 5
Non-resident end client contracts with non-resident agency who contracts with a UK agency. The UK agency contracts with a non-resident umbrella. The UK agency as the closest UK resident agency to the non-resident end client on the contractual supply chain will be a relevant party for the purposes of the measure.