Section 61G — 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 61G 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 MSC to provide the relevant services, and b the deemed employment payment were a payment by the MSC of earnings from that employment; but this is subject to subsection (3).

3 No deduction under Part 5 (deductions allowed from employment income) or section 232 (mileage allowance relief) may be made from the deemed employment payment. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 Where the MSC is a partnership and the worker is a member of the partnership, the deemed employment payment is treated as received by the worker in the worker's personal capacity and not as income of the partnership.

7 Where—

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