TC09663 - [2025] UKFTT 01250 (TC)

The version of s 44 ITEPA in force from 6 April 2003 was substituted by the Finance Act 2014 (Part 1, Chapter 2, s 16(2)). From 6 April 2014, the relevant legislation is found within Chapter 7, Part 2, ITEPA.

Section 44 ITEPA provides that:

“44 Treatment of workers supplied by agencies

(1)

This section applies if—

(a)

an individual (“the worker”) Personally provides services (which are not excluded services) to another person (“the client”),

(b)

there is a contract between –

(i)

the client or a person connected with the client, and

(ii)

a person other than the worker, the client or a person connected with the client (“the agency”), and

(c)

under or in consequence of that contract –

(i)

the services are provided, or

(ii)

the client or any person connected with the client pays, or otherwise provides consideration, for the services.

(2)

But this section does not apply if ––

(a)

it is shown that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person, or

(b)

remuneration receivable by the worker in consequence of providing the services constitutes employment income of the worker apart from this Chapter.

(3)

If this section applies ––

(a)

the worker is to be treated for income tax purposes as holding an employment with the agency, the duties of which consist of the services the worker provides to the client, and

(b)

all remuneration receivable by the worker (from any person) in consequence of providing the services is to be treated for income tax purposes as earnings from that employment, [...]”

Section 45 “Arrangements with agencies” provides that:

“If ––

(a)

an individual (“the worker”), with a view to Personally providing services (which are not excluded services) to another person (“the client”), enters into arrangements with a third person, and

(b)

the arrangements are such that the services (if and when they are provided) will be treated for income tax purposes under section 44 as duties of an employment held by the worker,

any remuneration receivable under or in consequence of the arrangements is to be treated for income tax purposes as earnings from that employment.”

Section 47 “Interpretation of this Chapter” provides that:

“(2)

In this Chapter “excluded services” means

(a)

services as an actor, singer, musician or other entertainer or as a fashion, photographic or artist’s model, or

(b)

services provided wholly –

(i)

in the worker’s own home, or

(ii)

at other premises which are neither controlled or managed by the client nor prescribed by the nature of the services.

(3)

For the purposes of this Chapter “remuneration” —

(a)

does not include anything that would not have constituted employment income of the worker if it had been receivable in connection with an employment apart from this Chapter, but

(b)

subject to paragraph (a), includes every form of payment, gratuity, profit and benefit.”