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

HMRC internal manual

Employment Status Manual

Basic principles: off-payroll working: key terms for the off-payroll working in the public sector legislation

The terms below supplement those already defined at ESM8015 and relate solely to the off-payroll reform at Chapter 10 ITEPA 2003.

Chain payment (PAYE) – A payment, money’s worth or any other benefit that can reasonably be taken to be for the worker’s services to the client.

Chain payment (NIC) – A payment or money’s worth that can reasonably be taken to be for the worker’s services to the client.

Deemed direct payment - The payment the fee-payer is treated as making to the worker which for PAYE purposes, is to be treated as earnings, from 6 April 2017 onwards

Deemed Direct Earnings - The payment the fee-payer is treated as making to the worker, for NICs purposes, which is to be treated as earnings from 6 April 2017 onwards.

NOTE – For the rest of this ESM section, where we refer to “Deemed Direct Payment” we also include “Deemed Direct Earnings” unless otherwise stated.

End-of- line remuneration - A payment or benefit from another person (the paying intermediary)

Fee-payer – The person in the chain immediately above the lowest

Make (PAYE) – In relation to a chain payment that is money’s worth, means transfer. In relation to a chain payment that is a benefit other than a payment or money’s worth, means provide.

Make (NIC) – In relation to the chain payment that is money’s worth means transfer.

Public authority – A public authority as defined by the Freedom of Information Act 2000, a Scottish public authority as defined by the Freedom of Information (Scotland) Act 2002, the Corporate Officer of the House of Commons, the Corporate Office of the House of Lords, the National Assembly for Wales Commission or the Northern Ireland Assembly Commission.