Income Tax (Earnings and Pensions) Act 2003 section 57

Earlier date of deemed employment payment in certain cases

Section 57 explains when the deemed employment payment under the intermediaries (IR35) rules must be treated as made at an earlier date than the normal end-of-tax-year date, because the worker's relationship with the intermediary has been broken during the year.

• If a "relevant event" breaks the link between the worker and the intermediary before the normal deemed payment date, the payment is treated as made immediately before that event (or the first such event if there are several).
• For a company intermediary, relevant events include the company ceasing to trade, or the worker ceasing to be a member, office-holder, or employee of the company.
• For a partnership intermediary, relevant events include the partnership dissolving, ceasing to trade, a partner ceasing to act, or the worker ceasing to be employed by the partnership; for an individual intermediary, the relevant event is the worker ceasing to be employed by that individual.
• Bringing the deemed payment date forward does not change how the payment is calculated — the calculation still takes into account all receipts and other relevant amounts for the full tax year.