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

Client-led status disagreement process

Section 61T sets out the process that must be followed when a worker or deemed employer disagrees with a client's determination of their employment status under the off-payroll working rules, and the consequences for the client of failing to respond.

• A worker or deemed employer may make representations to the client that the conclusion in a status determination statement is incorrect, provided this is done before the final chain payment is made
• The client must respond either by confirming the original determination with reasons, or by issuing a new status determination statement with a different conclusion, specifying the effective date and withdrawing the previous statement
• If the client fails to respond within 45 days of receiving the representations, the obligation to account to HMRC for income tax and NICs shifts from the fee-payer to the client until the duty is fulfilled
• Any new status determination statement issued to the deemed employer is treated as having been passed down through the labour supply chain from the person immediately above them