SCHEDULES
SCHEDULE 12 Provision of services through an intermediary
Part I Application of this Schedule
Engagements to which this Schedule applies
1
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Worker treated as receiving Schedule E income
2
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditions of liability where intermediary is a company
3
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditions of liability where intermediary is a partnership
4
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditions of liability where intermediary is an individual
5
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exception of certain payments subject to deduction of tax
6
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II The deemed Schedule E payment
Calculation of deemed Schedule E payment
7
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7AReimbursed expenses
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7BTreatment of mileage allowances
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of payments made under construction industry scheme
8
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Apportionments
9
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application of Schedule E rules
10
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application of Income Tax Acts in relation to deemed Schedule E payment
11
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part III Supplementary provisions
Earlier date of deemed Schedule E payment in certain cases
12
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relief in case of distributions by intermediary
13
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions applicable to multiple intermediaries
14
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiple intermediaries: avoidance of double-counting
15
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiple intermediaries: joint and several liability for PAYE deductions
16
F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of profits of intermediary: deduction for deemed Schedule E payment
17
1
In calculating for F30corporation tax purposes the profits of a business carried on by an intermediary that is treated as making in connection with that business a F19deemed employment payment , a deduction is allowed for—
a
the amount of the payment, and
b
the amount of any employer’s national insurance contributions paid by the intermediary in respect of it.
2
The deduction allowed by this paragraph must be taken into account for the period of account in which the F19deemed employment payment payment is treated as made.
3
No deduction in respect of the matters mentioned in sub-paragraph (1) may be made except in accordance with this paragraph.
F204
In this paragraph and paragraph 18 expressions that are also used in Chapter 8 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 have the same meaning as in that Chapter.
Calculation of profits of intermediary: special rules for partnerships
18
1
2
The amount of the deduction allowed under paragraph 17 is limited to the amount that reduces the profits of the partnership for the tax year to nil.
3
To the extent that in any tax year the expenses of the partnership in connection with the relevant engagements exceed the sum of—
F22a
the amount that, in calculating the deemed F23the employment income Parts of the Income Tax (Earnings and Pensions) Act 2003 payment, is deducted under Step Three of the calculation in paragraph 7, and
b
5% of the amount taken into account in Step One of the calculation in paragraph 7 as the intermediary’s receipts in respect of the relevant engagements,
they shall be left out of account in calculating the profits of the business.
Meaning of “associate"
19
F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meaning of “the Inland Revenue"
20
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation
21
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transitional provisions: general
22
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transitional provisions: deemed discontinuance of business
23
F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saving for provisions relating to agency workers
24
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .