Agency workers

HMRC has issued guidance on the status of workers supplied via intermediaries.

The guidance - Agency workers: changes to treatment of workers supplied through UK based agencies, employment businesses or other intermediaries - should be considered by:

  • those involved directly or indirectly in the provision of workers to end clients;
  • end-user businesses provided with workers through agencies or intermediaries; 
  • temporary or other workers supplied through agencies, employment businesses or other intermediaries. 

The new rules, which apply from 6 April 2014, '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. 

The changes to the Agency legislation do not apply if 

  • the manner in which the services are provided mean that the worker is not, subject to (or to a right of) supervision, direction or control by any person or the monies the worker receives for providing their services is already treated as employment income for income tax/NIC purposes.'

Visit the 'Related links' section on this page for further information on the guidance.