Schedule 10 contains provision about the calculation of the profits of a trade, profession or vocation on the cash basis, including provision—
(a)for the cash basis to be the default basis of calculation for certain persons,
(b)removing eligibility conditions relating to receipts,
(c)removing restrictions on deductions for loan interest, and
(d)removing restrictions on the availability of certain loss reliefs.
(1)In Chapter 3 of Part 11 of ITEPA 2003 (pay as you earn: special types of payer or payee), after section 688AA insert—
(1)PAYE regulations may make the following provision.
(2)Provision for an amount to be treated as having been recovered from the payee, and for that amount not to be recoverable from the payer (“the deemed employer”), where—
(a)the deemed employer would otherwise be liable to pay an amount under PAYE regulations in consequence of being treated under section 61N(3) as having made a deemed direct payment to a worker (other than by virtue of section 61WA), and
(b)an amount of income tax or corporation tax has already been paid, or assessed, in respect of income referable to that payment.
(3)Provision for the amount referred to in the opening words of subsection (2) to be the best estimate which can reasonably be made by an officer of Revenue and Customs (whether generally or specifically) of the amount referred to in subsection (2)(b).
(4)Provision preventing a person specified in PAYE regulations from—
(a)making a claim for the repayment of, or relief in respect of, an amount referred to in subsection (2)(b), or
(b)deducting, or setting off, the amount referred to in that subsection from, or against, any tax liability of the person,
in a case where an estimate of that amount is treated as having been recovered from the payee as a result of provision made by virtue of this section.
(5)In this section, “payee” and “payer” have the same meaning as in section 684 (see subsection (7C) of that section).”
(2)PAYE Regulations made by virtue of subsection (1) may make provision in relation to deemed direct payments made on or after 6 April 2017.
(1)In Table A in section 660 of ITEPA 2003 (taxable UK benefits), in the entry for carer’s allowance supplement, for “Sections 24 and 28” substitute “Section 81”.
(2)The amendment made by subsection (1) is treated as having had effect from the time when section 12 of FA 2019 (tax treatment of social security income) came into force.