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HMRC internal manual

Employment Status Manual

Basic principles: the deemed payment: introduction

Where the intermediaries legislation applies, an intermediary is treated as making a payment to the worker chargeable to tax as employment income and treated as earnings for Class 1 NICs purposes, known as a deemed payment.

This part of the guidance provides detailed guidance on how to:

  • calculate the deemed employment payment for engagements within Chapter 8 ITEPA 2003
  • account for the deemed payment
  • work out the taxable profits of the intermediary.

A step by step guide to help you work out the deemed payment is provided at ESM8140 onwards.