The Finance Bill 2014 saw the Government introduce the Offshore Intermediaries: False Self-Employment legislation which came into effect on 6 April 2014. The new rules must be considered when a worker is engaged through, or by, an employment business or agency. The new legislation aims to prevent workers being disguised as self-employed in order to avoid paying Income Tax and Class 1 National Insurance.
HM Revenue and Customs (HMRC) have published guidance to provide clarity on how the legislation will work in practise. Guidance surrounding ‘supervision, direction and control’ has been incorporated into
HMRC’s employment status manual which can be accessed here.
Within the updated guidance HMRC explain;
- the changes in legislation in regards to agency workers;
- some changes to PAYE legislation;
- when the new legislation applies to workers and when it does not with practical examples; and
- the separate rules for workers providing their services through a service company.