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Legislation
Income Tax (Earnings and Pensions) Act 2003

CHAPTER 10 Workers' services provided through intermediaries to public authorities or medium or large clients

  • Section 61K Scope of this Chapter
  • Section 61L Meaning of “public authority”
  • Section 61M Engagements to which Chapter applies
  • Section 61N Worker treated as receiving earnings from employment
  • Section 61NA Meaning of status determination statement
  • Section 61O Conditions where intermediary is a company
  • Section 61P Conditions where intermediary is a partnership
  • Section 61Q Calculation of deemed direct payment
  • Section 61R Application of Income Tax Acts in relation to deemed employment
  • Section 61S Deductions from chain payments
  • Section 61T Client-led status disagreement process
  • Section 61TA Duty for client to withdraw status determination statement if it ceases to be medium or large
  • Section 61U Information to be provided by worker or intermediary and consequences of failure
  • Section 61V Consequences of providing fraudulent information
  • Section 61W Prevention of double charge to tax and allowance of certain deductions
  • Section 61WA Anti-avoidance
  • Section 61X Interpretation
  1. Chapter 10 · Workers' services provided through intermediaries to public authorities or medium or large clients
  2. Conditions where intermediary is a company

Section 61O | Conditions where intermediary is a company F1

From legislation.gov.uk

(1)The conditions mentioned in section 61N(9)(b) are that—F1

(a)the intermediary is not an associated company of the client that falls within subsection (2), andF1

(b)subsection (1A) or (1B) is satisfied.F1F2

(1A)This subsection is satisfied where the worker has a material interest in the intermediary.F1F3

(1B)This subsection is satisfied where—F1F3

(a)the worker has a non-material interest in the intermediary,F1F3

(b)the worker—F1F3

(i)has received,F1F3

(ii)has rights which entitle, or which in any circumstances would entitle, the worker to receive, orF1F3

(iii)expects to receive,F1F3

a chain payment from the intermediary, and

(c)the chain payment does not, or will not, wholly constitute employment income of the worker (apart from as a result of this Chapter).F1F3

(2)An associated company of the client falls within this subsection if it is such a company by reason of the intermediary and the client being under the control—F1

(a)of the worker, orF1

(b)of the worker and other persons.F1

(3)The worker is treated as having a material interest in the intermediary if—F1

(a)the worker, alone or with one or more associates of the worker, orF1

(b)an associate of the worker, with or without other associates of the worker,F1

has a material interest in the intermediary.

(4)For this purpose “material interest” has the meaning given by section 51(4) and (5).F1

(4A)The worker is treated as having a non-material interest in the intermediary if—F1F4

(a)the worker, alone or with one or more associates of the worker, orF1F4

(b)an associate of the worker, with or without other associates of the worker,F1F4

has a non-material interest in the intermediary.

(4B)For this purpose a non-material interest means—F1F4

(a)beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, 5% or less of the ordinary share capital of the company,F1F4

(b)possession of, or entitlement to acquire, rights entitling the holder to receive 5% or less of any distributions that may be made by the company, orF1F4

(c)where the company is a close company, possession of, or entitlement to acquire, rights that would in the event of the winding up of the company, or in any other circumstances, entitle the holder to receive 5% or less of the assets that would then be available for distribution among the participators.F1F4

(4C)In subsection (4B)(c) “participator” has the meaning given by section 454 of CTA 2010.F1F4

(5)In this section “associated company” has the meaning given by section 449 of CTA 2010.F1

Notes

  1. F1

    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

  2. F2

    S. 61O(1)(b) substituted (with effect in accordance with s. 21(10) of the amending Act) by Finance Act 2021 (c. 26), s. 21(3)(a)

  3. F3

    S. 61O(1A)(1B) inserted (with effect in accordance with s. 21(10) of the amending Act) by Finance Act 2021 (c. 26), s. 21(3)(b)

  4. F4

    S. 61O(4A)-(4C) inserted (with effect in accordance with s. 21(10) of the amending Act) by Finance Act 2021 (c. 26), s. 21(3)(c)

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