»Ê¹ÚÌåÓýapp

Section 61R Chapter 10 ITEPA 2003

»Ê¹ÚÌåÓýapp Income Tax Acts apply in relation to the deemed direct payment (DDP) as if the worker were employed by the person treated as making the DDP and the services were performed, or to be performed, by the worker in the course of performing the duties of that employment.

»Ê¹ÚÌåÓýapp DDP is treated as taxable earnings from the employment for the purposes of securing that any deductions under Chapters 2 to 6 of Part 5 ITEPA 2003 do not exceed the DDP and as taxable earnings from the employment for the purposes of section 232 ITEPA 2003.

»Ê¹ÚÌåÓýapp worker is not chargeable to tax in respect of the DDP if, or to the extent that, by reason of any combination of the factors mentioned below the worker would not be chargeable to tax if;

• »Ê¹ÚÌåÓýapp client employed the worker,
• »Ê¹ÚÌåÓýapp worker performed the services in the course of that employment, and
• »Ê¹ÚÌåÓýapp DDP were a payment by the client of earnings from that employment.

»Ê¹ÚÌåÓýapp factors are-

• »Ê¹ÚÌåÓýapp worker being resident or domiciled outside the UK, or meeting the requirement of section 26A ITEPA 2003
• »Ê¹ÚÌåÓýapp client being resident outside, or not resident in, the UK, and
• »Ê¹ÚÌåÓýapp services being provided outside the UK.

Where the intermediary is a partnership or unincorporated association, the DDP is treated as received by the worker in the worker’s personal capacity and not as income of the partnership or association.

Where;

• »Ê¹ÚÌåÓýapp client is the person treated as making the DDP;
• »Ê¹ÚÌåÓýapp worker is resident in the UK
• »Ê¹ÚÌåÓýapp services are provided in the UK,
• »Ê¹ÚÌåÓýapp client is not resident in the UK, and
• »Ê¹ÚÌåÓýapp client does not have a place of business in the UK,

the client is treated as resident in the UK.

Regulation 18 »Ê¹ÚÌåÓýapp Social Security (Miscellaneous Amendments No.2) Regulations 2017

This Regulation applies where deemed direct earnings are treated as having been paid in any tax year under Regulation 14 of »Ê¹ÚÌåÓýapp Social Security (Miscellaneous Amendments No. 2) Regulations 2017.

For the purposes of Parts 1 to 5, Social Security Contributions and Benefits Act �

• »Ê¹ÚÌåÓýapp amount of any deemed direct earnings (DDE) calculated under Regulation 17 shall be treated as remuneration derived from an employed earner’s employment,
• »Ê¹ÚÌåÓýapp worker shall be treated, in relation to the DDE as employed in employed earners employment by the person treated as making the payment of DDE,
• »Ê¹ÚÌåÓýapp services were performed, or are to be performed, by the worker in the course of performing the duties of that employment, and
• »Ê¹ÚÌåÓýapp person treated as making the payment of DDE shall be treated as the secondary contributor in relation to the DDE.