Income Tax (Earnings and Pensions) Act 2003 section 61NA

Meaning of status determination statement

Section 61NA defines what constitutes a valid "status determination statement" issued by a client (the end user of a worker's services) under the off-payroll working rules, and sets out the reasonable care requirement that must be met for the statement to be effective.

• A status determination statement is a written declaration by the client stating whether or not the worker would be regarded as an employee if engaged directly, together with the reasons for that conclusion.
• The statement is valid whether the client concludes the worker falls inside or outside the off-payroll rules, provided it includes an explanation of the reasoning.
• A statement will not qualify as a valid status determination statement if the client has failed to take reasonable care in reaching the conclusion set out in it.
• Related provisions cover the client-led disagreement process for challenging the determination and the duty to withdraw the statement if the client ceases to be a medium or large organisation.