Section 61R — 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 61R 1 The Income Tax Acts (in particular, Part 11 and PAYE regulations) apply in relation to the deemed direct payment as follows.

2 They apply as if—

a the worker were employed by the person treated as making the deemed direct payment, and b the services were performed, or to be performed, by the worker in the course of performing the duties of that employment.

3 The deemed direct 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 direct 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 direct payment is treated as received by the worker in the worker's personal capacity and not as income of the partnership or association. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .