ISV income: tax form help

Intermediary Service Vehicles (ISVs)

This section will apply if you have put a company between yourself and the person or organisation that employs you, so that the company receives payment for the services provided rather than you. 

These are also known as personal service companies.

Ownership requirement

The ISV rules only apply if you:

• own more than 2% of the ordinary share capital of the ISV; or
• connected with an individual who owns more than 2% of the ordinary share capital of the ISV

Tax rules for ISVs

The ISV rules exist to ensure that if you use an ISV, you are subject to tax on the attributable earnings in the same manner as an employee is subject to tax on their employment income.

The amount of the payments made by the client to the ISV for your services are treated as attributable earnings.

This amount is reduced by:

1. any payment of salary or wages. from the ISV company to you (this should be declared on your tax return and is subject to ITIS
2. any employer social security contributions made by the ISV company in respect of the payment of salary or wages identified in 1 above
3. any other payment made by the ISV company in the year which, if it had been paid by you would have been an allowable tax deduction

Small attributable earnings exemption

The ISV rules don’t apply to you unless the aggregate of all payments made to all ISV’s of which you are a beneficial owner in any year of assessment exceeds £45,000.

Filling out the form

Enter the company name, the company Tax Identification Number (TIN) and your total attributable earnings from your ISV's. 

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