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HMRC internal manual

Employment Status Manual

Basic principles: conditions of liability: definition of associate

Paragraph 19 and 21 Schedule 12 Finance Act 2000 / Sections 60 and 61 Chapter 8 ITEPA 2003

Regulation 2 and 3 SI 2000 No. 727

Although the legislation refers to services performed by the worker, when considering whether the rules apply you should also take into account anything relating to an associate of the worker.

This includes:

  • any amounts received from the intermediary, either directly or indirectly
  • any rights to receive any such payment or benefit
  • any interests the associate has in the intermediary company.

In relation to an individual, “associate” has the meaning given by S.417(3) and (4) ICTA 1988. It includes any relative of the individual. Relative means:

  • husband or wife
  • parent or remoter forebear (for example grandparent)
  • child or remoter issue (for example grandchild), or
  • brother or sister

You should also note that for the purposes of this legislation a man and woman living together as husband and wife are treated as if they were married to each other.