• Personal Service Companies and Section 44 Intermediaries Legislation Amendment 2014


  • As our current contract includes one or more “intermediary” businesses that would be defined as an agency then we have to consider Section 44-47 of the Income Tax (Earnings and Pensions) Act 2003 as amended in April 2014. This places the responsibility for the correct deduction of PAYE on any income derived from the performance of the services with the company engaged by the end user client where any individual involved in the performance of the services is “caught” by the legislation.

    Where the, or the right of, supervision, direction or control in the manner that the services are performed rests or can rest with any other party then an individual is caught and any income resultant from the performance of the services is deemed as employment income and subject to PAYE.

    In the majority of cases the responsible party may well be our client and therefore it is imperative that we undertake to ensure that all income is being correctly treated.

    In order to ensure the above please complete the declaration below. We suggest that this declaration might be completed by your Accountant and/or you may wish to take independent advice as this declaration will be taken as confirmation that your company is compliant in its undertakings and would be relied upon in any circumstances where it might be necessary to do so.

  • Confirmation of operation of PAYE

    Please accept this as confirmation that all payments received by the above limited company in consequence of providing services under any contract with Payco Services Ltd will be wholly income of the above limited company.

    We further confirm that, in relation to any individual providing services under or in consequence of the above mentioned contract(s):

    • Any and all remuneration receivable by the individual will constitute employment income
    • The necessary deductions of income tax and National Insurance will be made
    • Secondary (Employer’s) National Insurance contributions will be paid
    • PAYE will be operated and the amounts reported to HMRC under RTI and remitted to HMRC on time

    The above declaration does not apply to any genuine dividends paid to the individual (which are not treated as remuneration) however the company further confirms that any dividends will be genuine and lawfully declared by the company.