Section 139 | Deduction for deemed employment payment

(1)This section applies for the purpose of calculating the profits of a trade carried on by an intermediary which is treated as making a deemed employment payment in connection with the trade.

(2)A deduction is allowed for—

(a)the amount of the deemed employment payment, and

(b)the amount of any employer's national insurance contributions paid by the intermediary in respect of it.

(3)The deduction is allowed for the period of account in which the deemed employment payment is treated as made.

(4)No deduction in respect of—

(a)the deemed employment payment, or

(b)any employer's national insurance contributions paid by the intermediary in respect of it,

may be made except in accordance with this section.

(5)In this section “deemed employment payment” and “intermediary” have the same meaning as in Chapter 8 of Part 2 of ITEPA 2003 (see sections 49 and 50 of that Act).