Introduction Details of the Section
2.Subsection 1 provides that Chapter 7 of Part 2 of ITEPA is amended.
3.Subsection 2 substitutes a new section 44 ITEPA 2003.
4.New section 44 (1) if the conditions in 44(1) (a), (b), and (c) apply then this section applies. Those conditions are where:
5.New section 44 (2) provides that the section will not apply where:
6.New section44 (3) (a) & (b) state that where the worker is providing services personally they must be treated as an employee of the agency for income tax purposes (deemed employee), and all income receivable by the worker in consequence of providing the services must be treated for income tax purposes as earnings to have come from that employment.
7.New section 44 (4) states that subsection (5) (explained below) will apply either before or after the worker begins to provide their services when either:
8.New section 44 (5) sets out that the services provided to an end client by the worker after a fraudulent document is provided:
9.New section 44 (6) defines what is meant by a relevant person, that being a person other than the client, worker or a person connected with the client or the agency who:
10.Subsection 3 amends section 45 ITEPA 2003: New 45 (a) & (b) omits references to the agency.
11.Subsection 4 amends section 46 ITEPA 2003:
12.Subsection 5 insert 46A Anti-avoidance.
13.New section 46A (1) section shall apply if:
14.New section 46A (2) sets out what is to be covered by the term “arrangements” in subsection (1)(b).
15.New section 46A(3) states that in the scenarios where the Targeted Anti Avoidance Rule (TAAR) comes in to force section 44 will apply.
16.New section 46A (4) defines who is the worker, client and agency in section 46A and states that section 44 has effect as if subsections (4) to (6) were omitted.
17.Subsection 6 amends section 47 ITEPA 2003: 47 (1) has now been omitted, removing the definition of an agency contract and the obligation for personal service.
18.Subsection 7 amends Chapter 3 Part 11 of ITEPA.  It substitutes sub-section (1) of section 688 for new sub-section (1).  New subsections 1A and 1B apply if the income receivable by the worker would be treated as employment income under the new section 44 and are explained below.
19.New subsection 1A treats the worker as being an employee of the agency (third party).
20.New sub-section 1B states that for the purposes of sections 687, 689 and 689A if:
21.In subsection (2) –
22.In subsection (3), the words “the agency” and “the client” have been substituted with definitions for the “the client” and “the deemed employer”.
	“the client” is now defined as the person who is the client for the purposes of section 44; and
	“the deemed employer” means the person with whom the individual is treated under section 44 as having an employment, and the duties of which consist of the services,”.