The deemed payment: introduction
Where the legislation applies, an intermediary is treated as making a payment to the worker chargeable to tax under Schedule E/as employment income and subject to Class 1 NICs, known as a deemed payment. This part of the guidance provides detailed guidance on how to:
- calculate the deemed payment
- account for the deemed payment
- work out the taxable profits of the intermediary.
A template to help you work out the deemed payment is provided at ESM3146.