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

Consequences of providing fraudulent information

Section 61V deals with what happens when someone in the off-payroll working chain provides a fraudulent document to try to show that the off-payroll working rules do not apply to an engagement, and shifts the liability for income tax and NICs to the person who committed the fraud.

• Where a person in the supply chain provides a fraudulent document intended to show that the off-payroll working rules do not apply, the obligation to account for tax and NICs shifts to the person who provided that fraudulent document (or the first such person if more than one)
• The deemed payment calculation still uses the chain payment made by the party who would originally have been treated as the deemed employer, even though the liability has moved
• The fraud rule applies even if it results in the same person being treated as both employer and employee for the purposes of the deemed employment
• A "relevant person" who can trigger this rule includes the worker, anyone connected with the worker, an officer of a corporate intermediary, or any UK-resident person (or person with a UK place of business) in the supply chain