Income Tax (Earnings and Pensions) Act 2003 section 60H

Duty on client to state whether it qualifies as small for a tax year

Section 60H requires a client to respond to a request from a worker or the client's agent by stating whether the client qualifies as a small entity for a particular tax year, and sets out the deadline and enforcement mechanisms for this obligation.

• Where an engagement falls within the off-payroll working rules and a worker or the client's agent asks the client whether it qualifies as small for a specified tax year, the client must provide a statement giving its opinion on that question.
• The deadline for providing the statement is the later of 45 days after the client receives the request, or the start of the 45-day period that ends at the beginning of the tax year specified in the request.
• If the client fails to respond by the deadline, the obligation can be enforced through an injunction in England and Wales, or in Scotland by an order for specific performance under the Court of Session Act 1988.
• The client's agent, for these purposes, means any person with whom the client has entered into a contract as part of the chain of arrangements connecting the client to the worker.