Chwilio Deddfwriaeth

Finance Act 2021

 Help about what version

Pa Fersiwn

 Help about advanced features

Nodweddion Uwch

Changes over time for: Section 21

 Help about opening options

Alternative versions:

Changes to legislation:

There are currently no known outstanding effects for the Finance Act 2021, Section 21. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

21Workers' services provided through intermediariesU.K.

(1)Chapter 10 of Part 2 of ITEPA 2003 (workers' services provided through intermediaries to public authorities or medium or large clients) is amended as follows.

(2)In section 61N (worker treated as receiving earnings from employment)—

(a)in subsection (3), for “and 61V” substitute “ , 61V and 61WA ”;

(b)in subsection (5), for “section 61V” substitute “ sections 61V and 61WA ”;

(c)in subsection (5A), in the words before paragraph (a), for “and 61V” substitute “ , 61V and 61WA ”.

(3)In section 61O (conditions where intermediary is a company)—

(a)in subsection (1), for paragraph (b) substitute—

(b)subsection (1A) or (1B) is satisfied.;

(b)after subsection (1) insert—

(1A)This subsection is satisfied where the worker has a material interest in the intermediary.

(1B)This subsection is satisfied where—

(a)the worker has a non-material interest in the intermediary,

(b)the worker—

(i)has received,

(ii)has rights which entitle, or which in any circumstances would entitle, the worker to receive, or

(iii)expects to receive,

a chain payment from the intermediary, and

(c)the chain payment does not, or will not, wholly constitute employment income of the worker (apart from as a result of this Chapter).;

(c)after subsection (4) insert—

(4A)The worker is treated as having a non-material interest in the intermediary if—

(a)the worker, alone or with one or more associates of the worker, or

(b)an associate of the worker, with or without other associates of the worker,

has a non-material interest in the intermediary.

(4B)For this purpose a non-material interest means—

(a)beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, 5% or less of the ordinary share capital of the company,

(b)possession of, or entitlement to acquire, rights entitling the holder to receive 5% or less of any distributions that may be made by the company, or

(c)where the company is a close company, possession of, or entitlement to acquire, rights that would in the event of the winding up of the company, or in any other circumstances, entitle the holder to receive 5% or less of the assets that would then be available for distribution among the participators.

(4C)In subsection (4B)(c) “participator” has the meaning given by section 454 of CTA 2010.

(4)In section 61S(4) (deductions from chain payments), for “services-provider” substitute “ relevant person ”.

(5)In section 61T(3) (client-led status disagreement process), for “section 61V” substitute “ sections 61V and 61WA ”.

(6)In section 61U (information to be provided by worker and consequences of failure)—

(a)in the heading, after “worker” insert “ or intermediary ”;

(b)in subsection (1), for “the worker” substitute “ the relevant person ”;

(c)in subsection (2), for “the worker” substitute “ the relevant person ”;

(d)in subsection (3), after “In this section” insert

relevant person” means the worker or, in a case where the worker has not complied with subsection (1), the intermediary;.

(7)In section 61V (consequences of providing fraudulent information)—

(a)in subsection (2), in the words before paragraph (a), for “services-provider” substitute “ relevant person (or if more than one, the first relevant person) in relation to whom the fraudulent documentation condition is met ”;

(b)in subsection (3), for “involves the services-provider” substitute “ may involve a services-provider ”;

(c)in subsection (5), after paragraph (c) insert—

(d)a person in the chain who is resident in the United Kingdom or has a place of business in the United Kingdom.

(8)After section 61W insert—

61WAAnti-avoidance

(1)This section applies if in any case at least one relevant person in a chain participates in a relevant avoidance arrangement.

(2)An arrangement is a “relevant avoidance arrangement” if its main purpose, or one of its main purposes, is to secure a tax advantage by securing that at least one of the conditions mentioned in section 61O or 61P is not met in relation to an intermediary.

(3)Section 61N(3) has effect as if the reference to the fee-payer were a reference to the participating person, but—

(a)section 61N(4) continues to have effect as if the reference to the fee-payer were a reference to the deemed employer, and

(b)Step 1 of section 61Q(1) continues to have effect as referring to the chain payment made by the deemed employer.

(4)The participating person is—

(a)in a case where only one relevant person participates in the arrangement, that person;

(b)in any other case the highest relevant person in the chain who participated in the arrangement and from whom HMRC considers there is a realistic prospect of recovering, within a reasonable period, the amount of tax that would have been paid (or not repaid) in the absence of the arrangement.

(5)Subsection (3) has effect even though that may involve a participating person being treated as both employer and employee in relation to the deemed employment under section 61N(3).

(6)In this section—

  • arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

  • deemed employer” means a person who would, but for this section, be treated by section 61N(3) as making a payment to the worker;

  • relevant person” means—

    (a)

    the worker;

    (b)

    a person who is resident in the United Kingdom or who has a place of business in the United Kingdom;

  • tax” means income tax (and “tax advantage” is to be construed accordingly”);

  • tax advantage” includes—

    (a)

    avoidance or reduction of a charge to tax or an assessment to tax,

    (b)

    repayment or increased repayment of tax,

    (c)

    avoidance of a possible assessment to tax, and

    (d)

    deferral of a payment of tax or advancement of a repayment of tax.

(9)In section 688AA(2)(a) (workers' services provided through intermediaries: recovery of PAYE), after “to a worker” insert “ (other than by virtue of section 61WA) ”.

(10)The amendments made by this section have effect in relation to deemed direct payments treated as made on or after 6 April 2021.

Yn ôl i’r brig

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open y Ddeddf Gyfan

Y Ddeddf Gyfan you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

Y Rhestrau you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Mae deddfwriaeth ar gael mewn fersiynau gwahanol:

Y Diweddaraf sydd Ar Gael (diwygiedig):Y fersiwn ddiweddaraf sydd ar gael o’r ddeddfwriaeth yn cynnwys newidiadau a wnaed gan ddeddfwriaeth ddilynol ac wedi eu gweithredu gan ein tîm golygyddol. Gellir gweld y newidiadau nad ydym wedi eu gweithredu i’r testun eto yn yr ardal ‘Newidiadau i Ddeddfwriaeth’.

Gwreiddiol (Fel y’i Deddfwyd neu y’i Gwnaed): Mae'r wreiddiol fersiwn y ddeddfwriaeth fel ag yr oedd pan gafodd ei deddfu neu eu gwneud. Ni wnaed unrhyw newidiadau i’r testun.

Close

Gweler y wybodaeth ychwanegol ochr yn ochr â’r cynnwys

Rhychwant ddaearyddol: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Dangos Llinell Amser Newidiadau: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Dewisiadau Agor

Dewisiadau gwahanol i agor deddfwriaeth er mwyn gweld rhagor o gynnwys ar y sgrin ar yr un pryd

Close

Rhagor o Adnoddau

Gallwch wneud defnydd o ddogfennau atodol hanfodol a gwybodaeth ar gyfer yr eitem ddeddfwriaeth o’r tab hwn. Yn ddibynnol ar yr eitem ddeddfwriaeth sydd i’w gweld, gallai hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • slipiau cywiro
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill
Close

Llinell Amser Newidiadau

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

Rhagor o Adnoddau

Defnyddiwch y ddewislen hon i agor dogfennau hanfodol sy’n cyd-fynd â’r ddeddfwriaeth a gwybodaeth am yr eitem hon o ddeddfwriaeth. Gan ddibynnu ar yr eitem o ddeddfwriaeth sy’n cael ei gweld gall hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • slipiau cywiro

liciwch ‘Gweld Mwy’ neu ddewis ‘Rhagor o Adnoddau’ am wybodaeth ychwanegol gan gynnwys

  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill