The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
This note covers:
For an outline of intermediaries rules, see the Introduction to personal service companies guidance note. For the rules, see the Personal service company rules and the Intermediaries and the public sector guidance note. For the calculation methodology, see the Calculating the deemed employment payment guidance note.
Separate legislation exists for tax and NIC. In most cases both sets of legislation produce the same outcome, so that an engagement will either be within the rules, and thus liable for both tax and NIC, or outside, and liable for neither. However, this is not always the case.
The NIC deeming rules means that those who provide services as teachers, some examiners, cleaners, non-executive directors or entertainers may be subject to special rules. Cross-border workers may also be treated differently for IR35 and public sector intermediaries tax and NICs. Both of these situations are discussed below.
An individualmay be self-employed under the status tests (see the Employed or self-employed guidance note), but this status may be over-ridden for NICs by various deeming provisions.
Examples of workers who are deemed to be employed earners for NICs include office cleaners and cleaners of telephone apparatus. Actors and entertainers used to be categorised as employed earners under the regulations but the relevant provisions were repealed
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