ESM5540 - Employment intermediaries travel expense provisions: the basic conditions - personally provides services
Income Tax (Earnings and Pensions) Act 2003 (ITEPA), Part 5, Chapter 2, sections 337 to 339A
Social Security (Contributions) Regulations 2001, Schedule 3, Part 8, paragraphs 3, 3ZA & 3ZB
For the employment intermediaries travel expense provisions to apply, 2 basic conditions [ESM5530] must both be met. The first of the basic conditions is that an individual 鈥榯he worker鈥� 鈥榩ersonally provides services (which are not excluded services) to another person (the client)鈥� (section 339A (1)(a) ITEPA).
In this context, a worker is personally providing services when they are doing work for the client.
Excluded services
This basic condition of personally providing services isn鈥檛 met if the worker鈥檚 services are provided wholly in the client鈥檚 own home.
Example - excluded services
Paul works away from home during the week only returning at weekends. As he is away so much he decides to get help with his domestic chores. During the summer he engages a gardener, George.
George works via his own PSC which is subject to the intermediaries legislation. Despite this, George isn鈥檛 covered by the new legislation as he鈥檚 providing his services in Paul鈥檚 own home.