Income Tax (Earnings and Pensions) Act 2003 section Schedule 7 paragraphs 13–14

Application of provisions to agency workers

Section Schedule 7 paragraphs 13–14 deal with transitional rules for applying the agency worker provisions, including terminology adjustments for periods before 6 April 2003 and a construction industry sub-contractor exemption around 6 April 1998.

• For periods before 6 April 2003, the agency worker rules use older tax terminology: "employment income" becomes "income chargeable under Schedule E", "earnings" becomes "emoluments", and references to the relevant chapter become references to section 134 of ICTA.
• The rule that treats agency workers as employees for tax purposes (section 44(2)) does not apply to payments made before 6 April 1998, unless those payments relate to services provided on or after that date.
• Similarly, the agency worker rule does not apply to payments made on or after 6 April 1998 where the services were actually provided before that date.
• Both of these exemptions only apply where the worker is, or would be, a sub-contractor in the construction industry as defined under the former section 560 of ICTA.