Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Status Manual

HM Revenue & Customs
, see all updates

Employment intermediaries travel expense provisions: the basic conditions - personally provides services

Income Tax (Earnings and Pensions) Act 2003 (ITEPA), Part 5, Chapter 2, sections 337 to 339A

Social Security (Contributions) Regulations 2001,  Schedule 3, Part 8, paragraphs 3, 3ZA & 3ZB

For the employment intermediaries travel expense provisions to apply, 2 basic conditions [ESM5530] must both be met. The first of the basic conditions is that an individual ‘the worker’ ‘personally provides services (which are not excluded services) to another person (the client)’ (section 339A (1)(a) ITEPA).

In this context, a worker is personally providing services when they are doing work for the client.

Excluded services

This basic condition of personally providing services isn’t met if the worker’s services are provided wholly in the client’s own home.

Example - excluded services

Paul works away from home during the week only returning at weekends. As he is away so much he decides to get help with his domestic chores. During the summer he engages a gardener, George.

George works via his own PSC which is subject to the intermediaries legislation. Despite this, George isn’t covered by the new legislation as he’s providing his services in Paul’s own home.