The Social Security (Contributions) Regulations 2001

[F1 Travel for necessary attendance: employment intermediaries U.K.

3ZB.— (1) This paragraph applies where an individual (“the worker”)—

(a) personally provides services (which are not excluded services) to another person (“the client”), and

(b) the services are provided not under a contract directly between the client or a person connected with the client and the worker but under arrangements involving an employment intermediary.

This is subject to the following provisions of this paragraph.

(2) Where this paragraph applies, each engagement is for the purposes of paragraphs 3 and 3ZA to be regarded as a separate employment.

(3) This paragraph does not apply if it is shown that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person.

(4) Sub-paragraph (3) does not apply in relation to an engagement if—

(a) Chapter 8 of Part 2 of ITEPA 2003 applies in relation to the engagement,

(b) the conditions in section 51, 52 or 53 of that Act are met in relation to the employment intermediary, and

(c) the employment intermediary is not a managed service company.

(5) This paragraph does not apply in relation to an engagement if—

(a) Chapter 8 of Part 2 of ITEPA 2003 does not apply in relation to the engagement merely because the circumstances in section 49(1)(c) of ITEPA 2003 are not met,

(b) assuming those circumstances were met, the conditions in section 51, 52 or 53 of that Act would be met in relation to the employment intermediary, and

(c) the employment intermediary is not a managed service company.

(6) In determining for the purposes of sub-paragraphs (4) to (5) whether the conditions in section 51, 52 or 53 of ITEPA 2003 are or would be met in relation to the employment intermediary—

[F2 (a) in section 51(1) of that Act—

(i) disregard “either” in the opening words, and

(ii) disregard paragraph (b) (and the preceding “or”), and]

(b) read references to the intermediary as references to the employment intermediary.

[F3 (6A) Sub-paragraph (6B) applies if—

(a) the client or a relevant person provides the employment intermediary (whether before or after the worker begins to provide the services) with a fraudulent document which is intended to constitute evidence that, by virtue of sub-paragraph (3), this paragraph does not or will not apply in relation to the services,

(b) that paragraph is taken not to apply in relation to the services, and

(c) in consequence, the employment intermediary does not under these Regulations deduct and account for an amount that would have been deducted and accounted for if this paragraph had been taken to apply in relation to the services.

(6B) For the purpose of recovering the amount referred to in sub-paragraph (6A)(c) (“the unpaid contributions”)—

(a) the worker is to be treated as having an employment with the client or relevant person who provided the document, the duties of which consist of the services, and

(b) the client or relevant person is under these Regulations to account for the unpaid contributions as if they arose in respect of earnings from that employment.

(6C) In sub-paragraphs (6A) and (6B) “relevant person” means a person, other than the client, the worker or a person connected with the employment intermediary, who—

(a) is resident, or has a place of business, in the United Kingdom, and

(b) is party to a contract with the employment intermediary or a person connected with the employment intermediary under or in consequence of which—

(i) the services are provided, or

(ii) the employment intermediary, or a person connected with the employment intermediary makes payments in respect of the services.]

[F4 (6D) Sub-paragraph (3) does not apply in relation to an engagement if—

(a) regulations 14 to 18 of the Social Security Contributions (Intermediaries) Regulations 2000 apply in relation to the engagement,

(b) one of conditions A to C in regulation 14 of those Regulations is met in relation to the employment intermediary, and

(c) the employment intermediary is not a managed service company.

(6E) This paragraph does not apply in relation to an engagement if—

(a) regulations 14 to 18 of the Social Security Contributions (Intermediaries) Regulations 2000 do not apply in relation to the engagement because the circumstances in regulation 13(1)(d) of those Regulations are not met,

(b) assuming those circumstances were met, one of conditions A to C in regulation 14 of those regulations would be met in relation to the employment intermediary, and

(c) the employment intermediary is not a managed service company.

(6F) In determining for the purposes of sub-paragraph (6D) or (6E) whether one of conditions A to C in regulation 14 is or would be met in relation to the employment intermediary, read references to the intermediary as references to the employment intermediary.]

(7) In determining whether this paragraph applies, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that this paragraph does not to any extent apply.

(8) In this paragraph—

“arrangements” includes any such scheme, transaction or series of transactions, agreement or understanding, whether or not enforceable, and any associated operations;

“employment intermediary” means a person, other than the worker or the client, who carries on a business (whether or not with a view to profit and whether or not in conjunction with any other business) of supplying labour;

“engagement” means any such provision of services as is mentioned in sub-paragraph (1)(a);

“excluded services” means services provided wholly in the client’s home;

“managed service company” means a company which—

(a)

is a managed service company within the meaning given by section 61B of ITEPA 2003, or

(b)

would be such a company disregarding subsection (1)(c) of that section.]

Textual Amendments

F1 Sch. 3 Pt. VIII paras. 3ZA, 3ZB inserted (6.4.2016) by The Social Security (Contributions) (Amendment) (No. 2) Regulations 2016 (S.I. 2016/352), regs. 1, 5(4)

F2 Sch. 3 Pt. VIII para. 3ZB(6)(a) substituted (6.7.2016) by The Social Security (Contributions) (Amendment No. 3) Regulations 2016 (S.I. 2016/647), regs. 1, 2

F3 Sch. 3 Pt. VIII inserted (E.W.S.) (28.11.2016) by The Social Security (Contributions) (Amendment No. 4) Regulations 2016 (S.I. 2016/1067), regs. 1, 6

F4 Sch. 3 Pt. VIII para. 3ZB(6D)-(6F) inserted (6.4.2017) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2017 (S.I. 2017/373), regs. 1, 4(2)