Income Tax (Earnings and Pensions) Act 2003 section 48

Scope of this Chapter

Section 48 defines when the off-payroll working rules (IR35) in this Chapter apply, specifically where services are provided through an intermediary to a client that is either a small entity or one without a UK connection.

• This Chapter applies where a worker provides services through an intermediary to a client that is not a public authority and that either qualifies as small for the tax year or has no UK connection for the tax year.
• The Chapter does not override the agency worker rules, does not apply to managed service companies, and does not apply to payments subject to the visiting performers withholding tax rules.
• A "public authority" has the same meaning as defined elsewhere in the Act for the purposes of the off-payroll working rules applicable to the public sector.
• Separate statutory provisions set out how to determine whether a client qualifies as small for a tax year and whether a client has a UK connection for a tax year.