Employment Status Manual - new guidance on employment intermediaries added
2 May 2014
In the past, employment intermediaries were often used to disguise people's employment status as self employed - when they were in fact, employees.
In Finance Bill 2014, the government introduced legislation to prevent these attempts to avoid paying national insurance and income tax. New rules apply from 6 April 2014 - and must be considered when a worker is engaged through (or by) an employment business or agency. Proposals to tackle the avoidance were announced at Autumn Statement 2013. A consultation was held from 10 December 2013 to 4 February 2014; and a government summary of consultation responses was published on 13 March 2014, with revised proposals. To provide clarity on how all this would work in practice, HMRC also published draft guidance on 'supervision, direction and control.' This guidance has now been incorporated into HMRC's online employment status manual . The new guidance explains the changes in legislation relating to agency workers and also some changes to PAYE legislation. It outlines when the new legislation applies to workers - and when it does not, giving practical examples to help agencies decide. It also explains the separate rules for workers who provide their services through a service company.
HMRC guidance on changes to agency worker treatment
3 June 2014
HMRC have issued detailed guidance on changes to the treatment of workers supplied through UK based agencies, employment businesses or other intermediaries.
The HMRC statement concerns new rules which apply from 6 April 2014 to the treatment of workers supplied through agencies or other intermediaries. The new rules affect workers who have previously been provided to end clients through an agency, to work on a self employed basis. The changes apply where: a worker personally provides their services - this prevents the use of a standard substitution clause to avoid the Agency legislation, there is a contract between an end client (or someone connected with them) and any third party (ie: the agency), and as a result of that contract the services of the worker are provided, or the client pays for the services to be provided.
HMRC guidance on agency worker changes
3 July 2014
HMRC have published guidance on changes to the treatment of workers supplied through UK based agencies or other intermediaries when workers are supplied through a third party, especially on a self employed basis.
The HMRC newly published guidance is here.
CIPP Policy News Journal
08/04/2015, Page 302 of 521
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