Part 2Trading income
Chapter 11Trade profits: other specific trades
Intermediaries treated as making employment payments
163Deduction for deemed employment payment
1
This section applies for the purpose of calculating the profits of a trade, profession or vocation carried on by an intermediary who is treated as making a deemed employment payment in connection with the trade, profession or vocation.
2
A deduction is allowed for—
a
the amount of the deemed employment payment, and
b
the amount of any employer's national insurance contributions paid by the intermediary in respect of it.
3
The deduction is allowed for the period of account in which the deemed employment payment is treated as made.
4
No deduction in respect of—
a
the deemed employment payment, or
b
any employer's national insurance contributions paid by the intermediary in respect of it,
may be made except in accordance with this section.
5
In this section “deemed employment payment” and “intermediary” have the same meaning as in Chapter 8 of Part 2 of ITEPA 2003.
164Special rules for partnerships
1
This section applies for the purpose of calculating the profits of a trade, profession or vocation carried on by a firm that is treated as making a deemed employment payment in connection with the trade, profession or vocation.
2
The amount of the deduction allowed under section 163 is limited to the amount that reduces the profits of the firm for the tax year to nil.
3
The expenses of the firm in connection with the relevant engagements for any period of account are limited to the total of—
a
5% of the amount taken into account in step 1 of the calculation in section 54(1) of ITEPA 2003 (calculation of deemed employment payment), and
b
the amount deductible in step 3 of that calculation.
4
In this section “deemed employment payment” and “the relevant engagements” have the same meaning as in Chapter 8 of Part 2 of ITEPA 2003.