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

Duty for client to withdraw status determination statement if it ceases to be medium or large

Section 61TA requires a private sector client that has previously issued a status determination statement to formally withdraw it if the client no longer qualifies as a medium or large business for a forthcoming tax year, and sets out the consequences of failing to do so.

• Where a private sector client has issued a status determination statement but will no longer qualify as medium or large for an upcoming tax year, they must notify the worker and/or deemed employer before that tax year begins
• The notification must confirm that the client no longer qualifies as medium or large and that the status determination statement is withdrawn from the start of the new tax year
• If the client fails to give this notification, they will be treated as still being medium or large for that tax year and will themselves become liable for PAYE and NICs obligations as if they were the fee-payer
• The notification must be sent to whoever originally received the status determination statement — the worker, the deemed employer (where the statement was given to the client's agent), or both