False self-employment – use of employment intermediaries

At the autumn statement 13, the government announced it would be tackling the use of intermediaries using ‘false self-employment’ to avoid employment taxes. This legislation took effect on 6th April 2014 and applies to any worker that is supplied by or through a third party.

Intermediaries will need to determine if workers are subject to ‘supervision, direction or control’. If so, the agency legislation must be operated, and income tax and NIC’s deducted.

Anti-avoidance measures are being taken by HMRC to stop businesses setting up alternative tax avoidance schemes.

At AAS, you can be rest assured that all workers will be paid in line with the legislation. We can offer help and guidance to ensure that the correct contracting structure is applied using our associated team of accountants and employment specialists.