Commentary on Sections Glossary Part 2: Employment income: charge to tax Section 59: Provisions applicable to multiple intermediaries
240.There may be a chain of intermediaries between the worker and the client.
241.Subsections (2) and (3) contain provisions derived from paragraph 16 concerning the intermediaries’ responsibility to operate PAYE on deemed payments made to the worker. Subsection (2) makes all the relevant intermediaries involved in the same relevant engagement jointly and severally liable for amounts due as a result of the operation of PAYE on the deemed payment in respect of the engagement common to all the intermediaries, plus (if applicable) any other relevant engagements. Subsection (3) provides a get-out for any intermediaries who have not received any payments or benefits in respect of the common relevant engagement or any other relevant engagement.
242.Subsections (4) and (5) prevent any double counting of amounts when calculating the deemed payments of the intermediaries where there is more than one intermediary. It applies where there has been some kind of payment (or benefit provided) from one relevant intermediary to another in respect of a relevant engagement. In such a case, a reduction is made in the amount to be taken into account at Steps 1  and 2  of the deemed payment calculation. This material derives from paragraph 15.
243.Subsection (6) says that, subject to subsections (2) to (5), the Chapter applies to each intermediary separately. Subsection (7) explains the label “relevant intermediary”, used in this section. These two subsections derive from paragraph 14.