HMRC has issued guidance on the changes to the treatment of workers supplied through UK based agencies or other intermediaries. This should be considered when workers are supplied, through a third party, especially if supplied on a self-employed basis.

From 6 April 2014 new rules apply to the treatment of workers supplied through agencies or other intermediaries. The new rules 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.

More information is available in the detailed guidance.