Worker’s services provided to public sector through intermediary

141AIntermediaries providing worker’s services to public sector

1

This section applies for the purposes of calculating the trading profits of a person where—

a

the person is the intermediary in a chain identified under section 61N of ITEPA 2003 (see section 61N(1)(b)),

b

a deemed direct payment is treated as made under subsection (3) of that section, and

c

the person receives a payment which can reasonably be taken to be in respect of the same services as those in respect of which the underlying chain payment is made.

2

The payment mentioned in subsection (1)(c) is not required to be brought into account in calculating the profits of the trade.

3

In this section “underlying chain payment” means the payment whose amount is used at Step 1 of section 61Q(1) of ITEPA 2003 as the starting point for calculating the amount of the deemed direct payment mentioned in subsection (1)(b).