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

Engagements to which Chapter applies

Section 61M defines the types of working arrangements that fall within the off-payroll working rules, setting out the qualifying conditions that must be met before the rules in sections 61N to 61R apply.

• The rules apply where a worker personally provides services to a client through an intermediary (rather than directly), and the client is either a public authority or a medium or large organisation with a UK connection
• The engagement is caught only if, were the worker contracted directly with the client, the worker would be regarded as an employee or office-holder of the client for income tax purposes
• The rules do not apply where the client is an individual and the services are provided for purposes outside that individual's trade or business
• Statutory auditors are specifically excluded from being treated as office-holders of the client, and the term "third party" intermediary can include a partnership or unincorporated association of which the worker is a member