Agency Workers & Employment Status for Tax Purposes

Those of you who employ workers through an agency should be aware of new legislation brought in by the HMRC.

This legislation stipulates that any worker supplied through an intermediary (such as an agency) will be treated as “employed” for tax purposes.

The aim is to tackle employers exploiting self-employment status to avoid paying National Insurance and tax, when workers are not genuinely self-employed.

When (re)negotiating with agencies be mindful of whether they are likely to pass the cost of their new obligations on to you, as this could impact how you price your services.

The new tax status rules do not change the test for employment status in other aspects of law.

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