Transitional provisions
5.—(1) Paragraph (2) applies where—
(a)the client in the case of an engagement to which Part 2 of the Intermediaries Regulations or Part 2 of the Northern Ireland Regulations applies is not a public authority within the meaning given by regulation 3A of the Intermediaries Regulations and regulation 3A of the Northern Ireland Regulations (as those regulations had effect before the amendments made by regulation 2(3) of these Regulations), and
(b)a chain payment (within the meaning given by regulation 14(2) of the Intermediaries Regulations and regulation 14(2) of the Northern Ireland Regulations) is made on or after 6th April 2021 that can reasonably be taken to be for services performed by the worker before 6th April 2021.
(2) Where this paragraph applies, the chain payment is to be disregarded for the purposes of Part 2 of the Intermediaries Regulations and Part 2 of the Northern Ireland Regulations.
(3) Paragraph (6) applies where—
(a)the client in the case of an engagement to which Part 2 of the Intermediaries Regulations or Part 2 of the Northern Ireland Regulations applies is not a public authority within the meaning given by regulation 3A of the Intermediaries Regulations and regulation 3A of the Northern Ireland Regulations (as those regulations had effect before the amendments made by regulation 2(3) of these Regulations), and
(b)one or more qualifying chain payments are made in the tax year 2021-22 or a subsequent tax year (“the tax year concerned”) to the intermediary.
(4) A chain payment made to the intermediary is a qualifying chain payment if it can reasonably be taken to be for services performed by the worker before 6th April 2021.
(5) A chain payment made to the intermediary is also a qualifying chain payment if—
(a)another chain payment (“the earlier payment”) was made before 6th April 2021 to a person other than the intermediary,
(b)the earlier payment can reasonably be taken to be for the same services as the chain payment made to the intermediary, and
(c)the person who made the earlier payment would, but for regulation 1(3) of these Regulations, have been treated by regulation 14(3) of the Intermediaries Regulations or regulation 14(3) of the Northern Ireland Regulations as making a payment of deemed direct earnings to the worker at the same time as they made the earlier payment.
(6) Where this paragraph applies, Part 1 of the Intermediaries Regulations or Part 1 of the Northern Ireland Regulations applies in relation to the engagement for the tax year concerned (in addition to Part 2 of the Intermediaries Regulations or Part 2 of the Northern Ireland Regulations), but as if—
(a)the amendments made by regulation 2(2) to (7) of these Regulations had not been made, and
(b)the qualifying chain payments received by the intermediary in the tax year concerned are the only payments and benefits received by the intermediary in that year in respect of the engagement.
(7) Paragraph (8) applies for the purposes of paragraphs (1) to (6) of this regulation where a chain payment (“the actual payment”) is made that can reasonably be taken to be for services of the worker performed during a period that begins before and ends on or after 6th April 2021.
(8) Where this paragraph applies, the actual payment is to be treated as two separate chain payments—
(a)one consisting of so much of the amount or value of the actual payment as can on a just and reasonable apportionment be taken to be for services performed before 6th April 2021, and
(b)another consisting of so much of the amount or value of the actual payment as can on a just and reasonable apportionment be taken to be for services performed on or after 6th April 2021.
(9) For the purposes of regulations 14(5), (5A)(a) and (8)(za) of the Intermediaries Regulations and regulations 14(5), (5A)(a) and 8(za) of the Northern Ireland Regulations it does not matter whether the status determination statement (within the meaning given by regulation 14A of the Intermediaries Regulations and regulation 14A of the Northern Ireland Regulations (as inserted by regulation 2(11) of these Regulations)) concerned is given before 6th April 2021 or on or after that date.
(10) For the purposes of regulation 20 of the Intermediaries Regulations and regulation 20 of the Northern Ireland Regulations—
(a)it does not matter whether the representations to the client mentioned in paragraph (1) of that regulation were made before 6th April 2021 or on or after that date, but
(b)in a case where the representations were made before 6th April 2021 that regulation has effect as if the reference in paragraph (3) to the date the client receives the representations were to 6th April 2021.