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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 / E4.1045 Services provided to public sector or medium or large private sector clients—accounting for the deemed direct payment
Commentary

E4.1045 Services provided to public sector or medium or large private sector clients—accounting for the deemed direct payment

Personal and employment tax

A payment to the worker (the 'end-of-line remuneration') may be adjusted to prevent double taxation. At its simplest, the payment to the worker may be treated as net of the amount of the deemed direct payment (DDP), provided the chain payment on which it is based (see E4.1043) has suffered PAYE (tax and NIC)1. More technically, the end-of-line remuneration must reasonably be seen as remuneration for the services provided to a client; a DDP must have been treated as made to the recipient of the end-of-line remuneration; the chain payment on which the DDP is based must also be reasonably seen as payment for the same services; and the recipient

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Web page updated on 17 Mar 2025 16:53