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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.10 Provision of services through an intermediary (IR35) /Accounting for the deemed employment payment and distributions / E4.1025 Distributions by intermediaries
Commentary

E4.1025 Distributions by intermediaries

Personal and employment tax

Although there is no legislative relief if the deemed payment is paid as salary, there is a relief if it is paid as a dividend. The relief does not reduce the amount of the deemed employment payment, but instead reduces the amount of the distribution1.

A claim can be made where the intermediary is a company that is treated as making a deemed employment payment in the tax year and either in that tax year, or in a subsequent tax year, the intermediary makes a distribution2. The claim for relief must be made in writing, within five years of 31 January following the tax year in which the distribution is made. The claim must be made by the intermediary (even though it affects the worker's tax liability)3.

HMRC states4 that when making a claim the following information should be provided:

  1. Ìý

    •ÌýÌýÌýÌý the name and tax reference of the company making the claim

  2. Ìý

    •ÌýÌýÌýÌý the name and

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Web page updated on 17 Mar 2025 17:29