Regulation 20A Duty for client to withdraw status determination statement if it ceases to be medium or largeF1

(1)

This regulation applies if in the case of an engagement to which this Part applies—

(a)

the client is not a public authority,

(b)

the client gives a status determination statement to the worker, the client's agent or both, and

(c)

the client does not (but for this regulation) qualify as medium or large for a tax year beginning after the status determination statement is given.

(2)

Before the beginning of the tax year the client must give a statement to the relevant person, or (as the case may be) to both of the relevant persons, stating—

(a)

that the client does not qualify as medium or large for the tax year, and

(b)

that the status determination statement is withdrawn with effect from the beginning of the tax year.

(3)

If the client fails to comply with that duty the following rules apply in relation to the engagement for the tax year—

(a)

the client is to be treated as medium or large for the tax year, and

(b)

regulation 14(3) and (4) has effect as if for any reference to the fee-payer there were substituted a reference to the client.

(4)

For the purposes of paragraph (2)—

(a)

the worker is a relevant person if the status determination statement was given to the worker, and

(b)

the deemed employer is a relevant person if the status determination statement was given to the client's agent.

(5)

In this regulation—

“client's agent” means a person with whom the client entered into a contract as part of the arrangements mentioned in regulation 13(1)(c);
“the deemed employer” means the person who, assuming one of conditions A to C in regulation 14 were met, would be treated as making a payment of deemed direct earnings to the worker under regulation 14(3) on the making of a chain payment;
“status determination statement” has the meaning given by regulation 14A.

Annotations

Textual amendments

F1: Regs. 20 and 20A substituted for reg. 20 (6.4.2021) by The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1220), regs. 1(1)(3), 2(14) (with reg. 5)

Notes on Part 2

Textual amendments

F1: Part 2 inserted (incorporating regs. 13-23) (6.4.2017) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2017 (S.I. 2017/373), regs. 1, 2(13)
F2: Pt. 2 heading substituted (6.4.2021) by The Social Security Contributions (Intermediaries) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1220), regs. 1(1)(3), 2(8)(a) (with reg. 5)