On shore intermediaries legislation

Well following on from my past blog in relation to false self-employment, it seems that I was right and HMRC pushed through the legislation with very little change.

So since 6th April, agencies are now responsible for the employment status of their contract workforce. Thanks very much say the agencies!  But how can they be sure that the workers are paying the correct tax?

All this uncertainty means that now more than ever you need to know your supply chain and ensure that you are comfortable with their processes.

Whilst a welcome change was a deferment of reporting on this to HMRC, they have very cleverly kept the go live as 6th April 2014.  Whilst penalties within the first year will be limited I am sure HMRC will be looking for best practice methods on this.

My advice:

  • Use PAYE umbrellas or PSC only.
  • Get confirmation that PAYE has been reported to HMRC

This way, you don’t need to worry about “control & supervision”

Good luck!

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