C2C1Part 2Employment income: charge to tax

Annotations:
Modifications etc. (not altering text)
C2

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)

Chapter 8F1Workers' services provided through intermediaries to small clients

Annotations:
Amendments (Textual)
F1

Pt. 2 Ch. 8 heading substituted (6.4.2021 for the tax year 2021-22 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 1 paras. 2, 24 (with Sch. 1 paras. 30-34)

Application of this Chapter

49Engagements to which this Chapter applies

1

This Chapter applies where—

a

an individual (“the worker”) personally performs, or is under an obligation personally to perform, services F2for another person (“the client”),

F5aa

the client is not a public authority,

b

the services are provided not under a contract directly between the client and the worker but under arrangements involving a third party (“the intermediary”), and

F3c

the circumstances are such that—

i

if the services were provided under a contract directly between the client and the worker, the worker would be regarded for income tax purposes as an employee of the client or the holder of an office under the client, or

ii

the worker is an office-holder who holds that office under the client and the services relate to the office.

F62

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

The reference in subsection (1)(b) to a “third party” includes a partnership or unincorporated body of which the worker is a member.

4

The circumstances referred to in subsection (1)(c) include the terms on which the services are provided, having regard to the terms of the contracts forming part of the arrangements under which the services are provided.

F44A

Holding office as statutory auditor of the client does not count as holding office under the client for the purposes of subsection (1)(c), and here “statutory auditor” means a statutory auditor within the meaning of Part 42 of the Companies Act 2006 (see section 1210 of that Act).

5

In this Chapter “engagement to which this Chapter applies” means any such provision of services as is mentioned in subsection (1).