Section 56 Application of Income Tax Acts in relation to deemed employment
United Kingdom
The Income Tax Acts (in particular, the PAYE provisions) apply in relation to the deemed employment payment as follows.
They apply as if—
the worker were employed by the intermediary, and
the relevant engagements were undertaken by the worker in the course of performing the duties of that employment.
The deemed employment payment is treated in particular—
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 employment payment; and
as taxable earnings from the employment for the purposes of section 232.
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Where the intermediary is a partnership or unincorporated association, the deemed employment payment is treated as received by the worker in the worker’s personal capacity and not as income of the partnership or association.
Where—
the worker is resident in the United Kingdom, F1 and
the services in question are provided in the United Kingdom, ...
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the intermediary is treated as having a place of business in the United Kingdom, whether or not it in fact does so.
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Annotations
Textual amendments
- F1
Words in s. 56(7)(a) inserted (with effect in accordance with s. 136(4) of the amending Act) by Finance Act 2003 (c. 14), s. 136(3)(b)(i)
Notes on Part 2
Modifications
- C1
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)
- C2
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))
Notes on Chapter 8
Textual amendments
- 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)