Section 61TA — Income Tax (Earnings and Pensions) Act 2003: Duty for client to withdraw status determination statement if it ceases to be medium or large

Duty for client to withdraw status determination statement if it ceases to be medium or large 61TA 1 This section applies if in the case of an engagement to which this Chapter 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 section) 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that the client does not qualify as medium or large for the tax year, and b that the status determination statement is withdrawn with effect from the beginning of the tax year.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 section 61N(3) and (4) have effect as if for any reference to the fee-payer there were substituted a reference to the client.

4 For the purposes of subsection (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 section— “ client's agent ” means a person with whom the client entered into a contract as part of the arrangements mentioned in section 61M(1)(c); “ the deemed employer ” means the person who, assuming one of conditions A to C in section 61N were met, would be treated as making a deemed direct payment to the worker under section 61N(3) on the making of a chain payment; “ status determination statement ” has the meaning given by section 61NA.