Income Tax (Earnings and Pensions) Act 2003 section 51

Conditions of liability where intermediary is a company

Section 51 sets out the conditions that must be met for the intermediaries legislation to apply where the intermediary between the worker and the client is a company.

• The intermediary company must not be an associated company of the client by reason of common control by the worker (alone or with others)
• Either the worker must have a material interest in the intermediary company, or the worker must receive payment directly from the intermediary that represents remuneration for services provided to the client
• A material interest means owning or controlling more than 5% of the ordinary share capital, or being entitled to more than 5% of distributions, or (for close companies) more than 5% of assets on winding up
• The worker's interest is assessed by looking at the combined holdings of the worker and any associates