How to work out the deemed payment where there is more than one worker
Paragraph 9 Schedule 12 Finance Act 2000/Section 54(8) ITEPA 2003
Regulation 7(4) SI 2000 No.727
An intermediary may supply the services of more than one worker to a client under the same contract, as a result of which a deemed payment will arise for each worker. Where a client makes a single payment in respect of two or more workers it will be necessary to make an apportionment of the income received by the intermediary in order to work out the respective deemed payments.
Any such apportionment should be made on a just and reasonable basis. This basis will depend upon the particular facts and circumstances.
For example, where the workers’ services have been provided on the basis of a daily rate then it should be relatively straightforward to apportion the income from the contract.
The legislation also provides for an apportionment to be made where the amount received by the intermediary is referable partly to the services of the worker and partly to other matters. For example, where an intermediary is reimbursed for expenditure incurred on behalf of the client.