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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Non-approved schemes: ex-gratia (voluntary) payments: small payments: definition of associated employers

Section 590(3) ICTA 1988

Consideration of whether employers are “associated” for the purposes of EIM15429 should be dealt with by a fully trained Inspector, as follows:

  • employers are associated if (directly or indirectly):

    • one is controlled by the other, or
    • both are controlled by a third person.

For the above purposes:

  • if an employer is a body corporate that is a close company, control is to be construed in accordance with Section 416 ICTA 1988
  • if an employer is a body corporate that is not a close company, control is to be construed in accordance with Section 840 ICTA 1988.