Section 56 — Income Tax (Earnings and Pensions) Act 2003: Application of Income Tax Acts in relation to deemed employment

Application of Income Tax Acts in relation to deemed employment 56 1 The Income Tax Acts (in particular, the PAYE provisions) apply in relation to the deemed employment payment as follows.

2 They apply as if—

a the worker were employed by the intermediary, and b the relevant engagements were undertaken by the worker in the course of performing the duties of that employment.

3 The deemed employment payment is treated in particular—

a 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 b as taxable earnings from the employment for the purposes of section 232. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 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.

7 Where—

a the worker is resident in the United Kingdom, and b the services in question are provided in the United Kingdom, ... c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . the intermediary is treated as having a place of business in the United Kingdom, whether or not it in fact does so. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .