ESM3140 - The deemed payment: introduction

Where the legislation applies, an intermediary is treated as making a payment to the worker chargeable to tax under Schedule E/as employment income and subject to Class 1 NICs, known as a deemed payment. This part of the guidance provides detailed guidance on how to:

• calculate the deemed payment
• account for the deemed payment
• work out the taxable profits of the intermediary.

A template to help you work out the deemed payment is provided at ESM3146.