Income Tax (Earnings and Pensions) Act 2003 section 53

Conditions of liability where intermediary is an individual

Section 53 sets out the conditions that must be met for a payment or benefit to fall within the intermediaries legislation where the intermediary is an individual rather than a company or partnership.

• This section applies only where the intermediary between the worker and the client is an individual
• The worker must receive, or be entitled to receive, the payment or benefit directly from the intermediary
• The payment or benefit must reasonably represent remuneration for services the worker provides to the client
• The test looks at the substance of what is actually happening between the worker, the intermediary and the client