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Chapter IEIM621080

Document Cited authorities 2 Cited in Related
Vincent
Published date25 April 2016
Record NumberIEIM621080
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Regulation 13 provides that where an individual is an employee and takes actions which would bring them within the definition of intermediary in DAC 6, the employee is not treated as being an intermediary. This only applies where the employer, or another firm connected with the employer, is the intermediary instead.

Employee and employer have the meaning given by section 4 of the Income Tax (Earnings and Pensions) Act 2003 (regulation 13(2)).

An employer is connected to another person (which includes legal and natural persons) for the purposes of regulation 13, if they are closely bound by financial economic or organisational links. While the question of whether two people are ‘closely bound’ by such links will always depend on the facts of the case, as a minimum, companies in the same group for the purposes of any relevant provisions of the Taxes Acts will virtually always meet this definition.

For example, an individual, K, is employed by an employment company, T, within a group of companies which provide consultancy services. As part of her employment, K advises a client on an arrangement which would be reportable under the Regulations. T is not an intermediary because its only activity is...

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