|
| |
|
7 | For paragraph 44 substitute— |
| |
“44 (1) | For the purposes of this Schedule, a taxable supply is a reduced- |
| |
| |
(a) | the taxable commodity is supplied to a facility specified in |
| |
a certificate given by the Secretary of State to the |
| 5 |
Commissioners as a facility which is to be taken as being |
| |
covered by a climate change agreement for a period |
| |
specified in the certificate, and |
| |
(b) | the supply is made at a time falling in that period. |
| |
(2) | Sub-paragraph (1) has effect subject to paragraph 45. |
| 10 |
(3) | The Commissioners may by regulations make provision for giving |
| |
effect to sub-paragraph (1). |
| |
(4) | Regulations under this paragraph may, in particular, include |
| |
provision for determining whether any taxable commodity is |
| |
| 15 |
(5) | The provision that may be made by virtue of sub-paragraph (4) |
| |
includes, in particular, provision for a taxable commodity of any |
| |
description specified in the regulations to be taken as supplied to |
| |
a facility only if the commodity is delivered to the facility.” |
| |
8 (1) | Paragraph 45 (reduced-rate supplies: variation of notices under paragraph |
| 20 |
44) is amended as follows. |
| |
(2) | Omit sub-paragraphs (2) to (4). |
| |
(3) | In sub-paragraph (5)— |
| |
(a) | in paragraph (b), for “the variation notice is published” substitute |
| |
“the variation certificate is given”, and |
| 25 |
(b) | for the words following that paragraph substitute “the original |
| |
certificate has effect as if the facility had never been specified in it”. |
| |
(4) | In sub-paragraph (6)— |
| |
(a) | in paragraph (b), for “the variation notice is published” substitute |
| |
“the variation certificate is given”, and |
| 30 |
(b) | for the words following that paragraph substitute “the original |
| |
certificate has effect as if the last day of the period specified for the |
| |
facility in the original certificate were the day on which the variation |
| |
| |
(5) | In sub-paragraph (7), for the words from “the original notice” to the end |
| 35 |
substitute “the original certificate has effect as if the last day of the period |
| |
specified for the facility in the original certificate were the later of— |
| |
(a) | the day on which the variation certificate is given, and |
| |
(b) | the day specified in the variation certificate.” |
| |
(6) | The italic heading before that paragraph accordingly becomes “Reduced-rate |
| 40 |
supplies: variation of certificates under paragraph 44”. |
| |
9 | After that paragraph insert— |
| |
“Reduced-rate supplies: deemed supply |
| |
45A (1) | This paragraph applies where— |
| |
|
| |
|
| |
|
(a) | a taxable supply has been made to any person (“the |
| |
| |
(b) | the supply was made on the basis that it was a reduced- |
| |
| |
(c) | it is later determined that the supply was not a reduced- |
| 5 |
| |
(2) | For the purposes of this Schedule— |
| |
(a) | the recipient is deemed to make a taxable supply to itself of |
| |
the taxable commodity, and |
| |
(b) | the amount payable by way of levy on that deemed supply |
| 10 |
is 80 per cent. of the amount that would be payable if the |
| |
supply were not a reduced-rate supply.” |
| |
10 | In paragraph 147 (interpretation), in the definition of “reduced-rate |
| |
| |
(a) | for “44(3)” substitute “44(1)”, and |
| 15 |
(b) | for “44(4)” substitute “44(2)”. |
| |
Notifications and certificates |
| |
11 (1) | Paragraph 11 (exemption: supply not for burning in UK) is amended as |
| |
| |
(2) | In sub-paragraph (1)— |
| 20 |
(a) | omit “has, before the supply is made, notified the supplier”, and |
| |
(b) | omit “that he” (in both places). |
| |
(3) | In sub-paragraph (3)— |
| |
(a) | omit “has, before the supply is made, notified the supplier that”, and |
| |
| 25 |
12 (1) | Paragraph 101 (civil penalties: incorrect notifications etc) is amended as |
| |
| |
(2) | Omit sub-paragraph (1). |
| |
(3) | In sub-paragraph (2)— |
| |
(a) | after “paragraphs” insert “11,” and |
| 30 |
(b) | after “the certificate is” insert “(or becomes)”. |
| |
(4) | In sub-paragraph (3)— |
| |
(a) | for “sub-paragraph (1) or (2)” substitute “this paragraph”, and |
| |
(b) | omit “notification or”. |
| |
(5) | In sub-paragraph (4)— |
| 35 |
(a) | for “notification or certificate” substitute “certificate (or not revoking |
| |
| |
(b) | for “the person who gave it” substitute “the person concerned”, and |
| |
(c) | for the words from “there is” to the end substitute “the person has a |
| |
| 40 |
(6) | In sub-paragraph (5)— |
| |
(a) | for “notification or certificate” substitute “certificate (or not revoking |
| |
| |
|
| |
|
| |
|
(b) | for “the giving of the notification or certificate” substitute “that”. |
| |
(7) | The italic heading before paragraph 101 accordingly becomes “Civil penalties: |
| |
| |
| |
13 (1) | Paragraphs 2 to 10 come into force on such day as the Treasury may by order |
| 5 |
made by statutory instrument appoint. |
| |
(2) | But any power to make regulations under any provision inserted or |
| |
amended by any of those paragraphs may be exercised at any time after this |
| |
| |
(3) | The power to make an order under sub-paragraph (1)— |
| 10 |
(a) | may be exercised so as to bring a provision into force only in such |
| |
cases as may be described in the order, |
| |
(b) | may be exercised so as to make different provision for different cases |
| |
| |
(c) | includes power to make incidental, consequential, supplemental or |
| 15 |
transitional provision or savings. |
| |
| |
| |
Managed service companies |
| |
| |
| 20 |
1 | ITEPA 2003 is amended as follows. |
| |
2 | In section 7(5) (meaning of “employment income” etc), for paragraph (a) |
| |
| |
“(a) | Chapters 7 to 9 of this Part (agency workers, workers under |
| |
arrangements made by intermediaries, and workers |
| 25 |
providing services through managed service companies),”. |
| |
3 | In section 48(2) (workers under arrangements made by intermediaries: |
| |
scope of Chapter) for “or” at the end of paragraph (a) substitute— |
| |
“(aa) | applies to services provided by a managed service company |
| |
(within the meaning of Chapter 9 of this Part), or”. |
| 30 |
4 | After section 61 insert— |
| |
| |
Managed service companies |
| |
Application of this Chapter |
| |
61A | Scope of this Chapter |
| 35 |
(1) | This Chapter has effect with respect to the provision of services by a |
| |
| |
|
| |
|
| |
|
(2) | Nothing in this Chapter— |
| |
(a) | affects the operation of Chapter 7 of this Part (agency |
| |
| |
(b) | applies to payments or transfers to which section 966(3) or (4) |
| |
of ITA 2007 applies (visiting performers: duty to deduct and |
| 5 |
account for sums representing income tax). |
| |
61B | Meaning of “managed service company” |
| |
(1) | A company is a “managed service company” if— |
| |
(a) | its business consists wholly or mainly of providing (directly |
| |
or indirectly) the services of an individual to other persons, |
| 10 |
(b) | payments are made (directly or indirectly) to the individual |
| |
(or associates of the individual) of an amount equal to the |
| |
greater part or all of the consideration for the provision of the |
| |
| |
(c) | the way in which those payments are made would result in |
| 15 |
the individual (or associates) receiving payments of an |
| |
amount (net of tax and national insurance) exceeding that |
| |
which would be received (net of tax and national insurance) |
| |
if every payment in respect of the services were employment |
| |
income of the individual, and |
| 20 |
(d) | a person who carries on a business of promoting or |
| |
facilitating the use of companies to provide the services of |
| |
individuals (“an MSC provider”) is involved with the |
| |
| |
(2) | An MSC provider is “involved with the company” if the MSC |
| 25 |
provider or an associate of the MSC provider— |
| |
(a) | benefits financially on an ongoing basis from the provision of |
| |
the services of the individual, |
| |
(b) | influences or controls the provision of those services, |
| |
(c) | influences or controls the way in which payments to the |
| 30 |
individual (or associates of the individual) are made, |
| |
(d) | influences or controls the company’s finances or any of its |
| |
| |
(e) | gives or promotes an undertaking to make good any tax loss. |
| |
(3) | A person does not fall within subsection (1)(d) merely by virtue of |
| 35 |
providing legal or accountancy services in a professional capacity. |
| |
(4) | A person does not fall within subsection (1)(d) merely by virtue of |
| |
carrying on a business consisting only of placing individuals with |
| |
persons who wish to obtain their services (including by contracting |
| |
with companies which provide their services). |
| 40 |
(5) | Subsection (4) does not apply if the person or an associate of the |
| |
| |
(a) | does anything within subsection (2)(c) or (e), or |
| |
(b) | does anything within subsection (2)(d) other than influencing |
| |
the company’s finances or activities by doing anything |
| 45 |
within subsection (2)(b). |
| |
|
| |
|