SCHEDULE 3 PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS

PART VIII TRAVELLING, RELOCATION AND OTHER EXPENSES AND ALLOWANCES OF THE EMPLOYMENT

F1Travel for necessary attendance: employment intermediaries

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—

(a)

in section 50(1)(b) of that Act, disregard the words “that is not employment income”, and

(b)

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.