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

Conditions where intermediary is a partnership

Section 61P sets out the conditions that must be met for the off-payroll working rules to apply where the intermediary through which a worker provides services to a public sector client is a partnership.

• The worker, alone or with relatives, must be entitled to 60% or more of the partnership's profits, or
• Most of the partnership's profits must come from services provided to a single client (or that client and its associates) under relevant engagements, or
• Any partner's income under the profit-sharing arrangements must be based on the income that partner personally generates from services under relevant engagements, or
• A "relative" for these purposes means a spouse or civil partner, parent, child, more distant direct-line relation, or brother or sister