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HMRC internal manual

Employment Status Manual

HM Revenue & Customs
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Conditions of liability: introduction

Paragraph 3, 4 and 5 Schedule 12 Finance Act 2000/Sections 51, 52 and 53 ITEPA 2003

Regulation 5 SI 2000 No. 727

The legislation will only apply where the intermediary satisfies specific conditions of liability. This section contains detailed guidance on those conditions, which will vary depending on whether the intermediary is:

If the conditions of liability are not met then a deemed payment is not treated as being made.

There are flowcharts at ESM3109 (where the intermediary is a company) and at ESM3116 (where the intermediary is a partnership) which provide a guide to establishing whether the conditions of liability are satisfied for a particular intermediary.