1

House of Commons

Notices of Amendments

given up to and including

Monday 18 May 2020

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Amendments tabled since the last publication: NC1 and NS1

Public Bill Committee

Finance Bill

Note

This document includes all amendments tabled to date and includes any

withdrawn amendments at the end. The amendments have been arranged in the

order in which they relate to the Bill.

Jesse Norman

NC1

To move the following Clause—

“Workers’ services provided through intermediaries

Schedule (Workers’ services provided through intermediaries) makes provision

about workers’ services provided through intermediaries.”

Member’s explanatory statement

This new clause introduces the new Schedule inserted by NS1.

Notices of Amendments: 18 May 2020                     

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Finance Bill, continued

Jesse Norman

NS1

To move the following Schedule—

“Schedule

Workers’ services provided through intermediaries

Part 1

Amendments to Chapter 8 of Part 2 of ITEPA 2003

1          

Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers under

arrangements made by intermediaries) is amended as follows.

2          

For the heading of the Chapter substitute “Workers’ services provided through

intermediaries to small clients”.

3    (1)  

Section 48 (scope of Chapter) is amended as follows.

      (2)  

In subsection (1) for the words from “, but” to the end substitute “in a case

where the services are provided to a person who is not a public authority and

who either—

(a)    

qualifies as small for a tax year, or

(b)    

does not have a UK connection for a tax year.”

      (3)  

After subsection (3) insert—

“(4)    

For provisions determining when a person qualifies as small for a tax

year, see sections 60A to 60G.

(5)    

For provision determining when a person has a UK connection for a

tax year, see section 60I.”

4    (1)  

Section 50 (worker treated as receiving earnings from employment) is

amended as follows.

      (2)  

In subsection (1) before paragraph (a) insert—

“(za)    

the client qualifies as small or does not have a UK

connection,”.

      (3)  

After subsection (4) insert—

“(5)    

The condition in paragraph (za) of subsection (1) is to be ignored if—

(a)    

the client concerned is an individual, and

(b)    

the services concerned are performed otherwise than for the

purposes of the client’s business.

(6)    

For the purposes of paragraph (za) of subsection (1) the client is to be

treated as not qualifying as small for the tax year concerned if the

client is treated as medium or large for that tax year by reason of

section 61TA(3)(a).”

5          

After section 60 insert—

“When a person qualifies as small for a tax year

60A    

When a company qualifies as small for a tax year

(1)    

For the purposes of this Chapter, a company qualifies as small for a tax

year if one of the following conditions is met (but this is subject to

section 60C).

Notices of Amendments: 18 May 2020                     

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Finance Bill, continued

(2)    

The first condition is that the company’s first financial year is not

relevant to the tax year.

(3)    

The second condition is that the small companies regime applies to the

company for its last financial year that is relevant to the tax year.

(4)    

For the purposes of this section, a financial year of a company is

“relevant to” a tax year if the period for filing the company’s accounts

and reports for the financial year ends before the beginning of the tax

year.

(5)    

Expressions used in this section and in the Companies Act 2006 have

the same meaning in this section as in that Act.

60B    

When a company qualifies as small for a tax year: joint ventures

(1)    

This section applies when determining for the purposes of section

60A(3) whether the small companies regime applies to a company for

a financial year in a case where—

(a)    

at the end of the financial year the company is jointly

controlled by two or more other persons, and

(b)    

one or more of those other persons are undertakings (“the joint

venturer undertakings”).

(2)    

If the company is a parent company, the joint venturer undertakings

are to be treated as members of the group headed by the company.

(3)    

If the company is not a parent company, the company and the joint

venturer undertakings are to be treated as constituting a group of

which the company is the parent company.

(4)    

In this section the expression “jointly controlled” is to be read in

accordance with those provisions of international accounting

standards which relate to joint ventures.

(5)    

Expressions used in this section and in the Companies Act 2006 have

the same meaning in this section as in that Act.

60C    

When a company qualifies as small for a tax year: subsidiaries

(1)    

A company does not qualify as small for a tax year by reason of the

condition in section 60A(3) being met if—

(a)    

the company is a member of a group at the end of its last

financial year that is relevant to the tax year,

(b)    

the company is not the parent undertaking of that group at the

end of that financial year, and

(c)    

the undertaking that is the parent undertaking of that group at

that time does not qualify as small in relation to its last

financial year that is relevant to the tax year.

(2)    

Where the parent undertaking mentioned in subsection (1)(c) is not a

company, sections 382 and 383 of the Companies Act 2006 have

effect for determining whether the parent undertaking qualifies as

small in relation to its last financial year that is relevant to the tax year

as if references in those sections to a company and a parent company

included references to an undertaking and a parent undertaking.

Notices of Amendments: 18 May 2020                     

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Finance Bill, continued

(3)    

For the purposes of subsections (1)(c) and (2) a financial year of an

undertaking that is not a company is “relevant to” a tax year if it ends

at least 9 months before the beginning of the tax year.

(4)    

For the purposes of this section, a financial year of a company is

“relevant to” a tax year if the period for filing the company’s accounts

and reports for the financial year ends before the beginning of the tax

year.

(5)    

Expressions used in this section and in the Companies Act 2006 have

the same meaning in this section as in that Act.

60D    

When a relevant undertaking qualifies as small for a tax year

(1)    

Sections 60A to 60C apply in relation to a relevant undertaking as they

apply in relation to a company, subject to any necessary modifications.

(2)    

In this section “relevant undertaking” means an undertaking in respect

of which regulations have effect under—

(a)    

section 15(a) of the Limited Liability Partnerships Act 2000,

(b)    

section 1043 of the Companies Act 2006 (unregistered

companies), or

(c)    

section 1049 of the Companies Act 2006 (overseas

companies).

(3)    

Expressions used in this section and in the Companies Act 2006 have

the same meaning in this section as in that Act.

60E    

When other undertakings qualify as small for a tax year

(1)    

An undertaking that is not a company or a relevant undertaking

qualifies as small for a tax year if one of the following conditions is

met.

(2)    

The first condition is that the undertaking’s first financial year is not

relevant to the tax year.

(3)    

The second condition is that the undertaking’s turnover for its last

financial year that is relevant to the tax year is not more than the

amount for the time being specified in the second column of item 1 of

the Table in section 382(3) of the Companies Act 2006.

(4)    

For the purposes of this section a financial year of an undertaking is

“relevant to” a tax year if it ends at least 9 months before the beginning

of the tax year.

(5)    

In this section—

“relevant undertaking” has the meaning given by section 60D,

and

“turnover”, in relation to an undertaking, means the amounts

derived from the provision of goods or services after the

deduction of trade discounts, value added tax and any other

taxes based on the amounts so derived.

(6)    

Expressions used in this section and in the Companies Act 2006 have

the same meaning in this section as in that Act.