ESM10005 - off-payroll working legislation: Chapter 10, ITEPA 2003 (from 6 April 2021): basic principles: meaning of public authority
Section 61L(1) Chapter 10, Part 2 ITEPA 2003
Regulation 3A Social Security Contributions (Intermediaries) Regulations 2000
For the purpose of Chapter 10, Part 2 ITEPA 2003 “public authority” means:
a) a public authority as defined by the Freedom of Information Act 2000 (FOIA),
b) a Scottish public authority as defined by the Freedom of Information (Scotland) Act 2002 (FOISA),
c) the Corporate Officer of the House of Commons,
d) the Corporate Officer of the House of Lords,
e) the National Assembly for Wales Commission,
f) the Northern Ireland Assembly Commission,
g) a body specified in s23(3) of the Freedom of Information Act 2000, or
h) a company connected with any person mentioned in paragraphs (a) to (g).
For the purposes of (h) above, ‘connected’ takes its meaning from section 993 Income Tax Act 2007 (see PTM027000).
For the purposes of Chapter 10 an authority within a) and b) above is a ‘public authority’ in relation to all its activities even if only part of its activities are subject to FOIA and FOISA.
For the purposes of the commencement date of the legislation and the transitional provisions, ESM10001 only relates to public authorities listed from a) to f), above. Whereas ESM10001A relates only to public authorities listed in g) and h).
Statutory exclusions
Pre-6 April 2021
Statutory auditors
Holding office as a statutory auditor of the client does not count as holding office under the client for these purposes. Here ‘statutory auditor’ means a statutory auditor within the meaning of Part 42 Companies Act 2006. Further guidance on the meaning of office holder can be found at ESM2500 onwards.
Provision of primary healthcare services including pharmaceutical and ophthalmic (opticians) services
Up to 6 April 2021 there were statutory exclusions from Chapter 10, Part 2 ITEPA 2003 for certain entities providing some types of primary healthcare services, such as certain pharmaceutical and ophthalmic services, if certain conditions were met. Details of these exclusions can be found at ESM9020. Those exclusions will no longer apply after 6 April 2021 to public authorities which are classified as medium and large-sized, as those public authorities will be subject to the size rules like any other entity.
Post-6 April 2021
Statutory auditors
The statutory auditor provision continues to apply post-6 April 2021.
Provision of primary healthcare services including pharmaceutical and ophthalmic (opticians) services
Primary-healthcare providers who previously would have benefited from the above statutory exclusion (see ESM9020) who are medium or large-sized will have to consider the off-payroll working rules in Chapter 10, Part 2 ITEPA 2003.