will often have elements of both employment and self-employment, so careful consideration needs to be given to the correct tax/NI treatment. Those who are genuinely self-employed are responsible for paying the tax/NI themselves. Agency Rules Under these rules (and subject to some limited exceptions) if an individual provides services
through an agency (an agency for this purpose can include anyone providing labour only), the remuneration the worker receives for providing the services isn’t otherwise chargeable as employment income, and their work is under the supervision, direction or control, (S, D, or C) of the engager or anyone else in the chain. The agency with the direct contractual relationship with the engager/end client is responsible for operating PAYE and NI when paying the worker. The engager of the agency should undertake due diligence to make sure PAYE and NI is applied, as in certain circumstances they can be held liable under transfer of debt provisions for any tax/NI not paid by the agency. Key aspects include: The agency must operate tax/ NI on the payments made to the individual worker where S, D, or C applies. The worker may be treated as an employee of the agency for these purposes only, so employment l aw should be considered separately. The agency is responsible for ensuring compliance with these rules, including maintaining accurate records and providing necessary information and returns to HMRC.
nce on off-payroll working, atus Manual (ESM) and various
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ISSUE 8 GLOBAL PAYROLL MAGAZINE
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