Changes for people using intermediaries for staffing
HMRC’s view is that many people now use an employment intermediary to help them find work. There are different types of intermediaries, the most common are employment agencies. These provide people with regular work and give them the flexibility to accept or decline work as they wish.
Businesses use intermediaries to get skilled staff at short notice for temporary engagements. It is accepted that employment intermediaries play an important role in contributing to the UK economy.
However, HMRC believes too many people are using intermediaries as a way of avoiding tax. Accordingly, the government has changed the law on PAYE for some workers provided by intermediaries.
If an offshore intermediary directly supplies a UK-based client with a worker, it is the client who is potentially treated as the employer, and has the obligation to account for PAYE.
If you are using such an intermediary you should check out your position.
Date: 27th October, 2014
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