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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) /Intermediaries—public sector and medium or large private sector clients / E4.1042 Services provided to public sector or medium or large private sector clients—the intermediary
Commentary

E4.1042 Services provided to public sector or medium or large private sector clients—the intermediary

Personal and employment tax

The intermediary may be an individual, a company (which includes an unincorporated association)1 or a partnership: special conditions apply where the intermediary is a company or a partnership2.

Intermediary is a company

Where the intermediary is a company, the intermediary must not be an associated company of the client and the worker must have either:

  1. Ìý

    •ÌýÌýÌýÌý a material interest3 in the intermediary4 or

receives, or has the right to receive a chain payment from the company5

to be included in these rules. The rules do not apply if the worker is already treated as having received employment income6. This would for example exclude a standard payment made to a worker through an employment business or agency, so long as all payments to the worker are already subjected to PAYE by the agency. See E4.225.

For this purpose the intermediary is an associated company of the client if both are under the control of either the

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Web page updated on 17 Mar 2025 17:41