E4.910C Steps in calculating the deemed employment payment
Once the definition of an MSC has been met (see E4.908A), the legislation deems amounts paid to the worker to be employment income for the purposes of PAYE at the time of receipt. This does not apply to any income already treated as employment income (usually this might include a small salary).
However, where the engagement falls within the ambit of the rules relating to the provision of services to the public sector (see E4.1040)1 the public sector rules will take priority.
The deemed amount includes any payment made, or benefit provided, to the worker or the worker's associates by any person which can reasonably be taken to be in respect of the services provided, which are now referred to as 'the relevant services'.
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