I act for a company which provides asbestos removal services. In addition, the company also provides self employed subcontractors to other asbestos removal companies, in affect acting as an agency.
I should be grateful if anyone could advise me of the employment status of these subcontractors?
Whilst researching agency legislation I came across Section 134 ICTA 1988 / Part 2 Chapter 7 ITEPA 2003 which states that the agency legislation applies where a worker provides services to an employer through a third party in such a way that, technically, the worker is not an employee of either. The third party will often be an employment agency but the legislation may apply to any worker who provides services through any third party.
Where Section 134 / Part 2 Chapter 7 applies, the services provided by the worker are, for income tax purposes, treated as if they were the duties of an employment held by the worker. The remuneration receivable is chargeable to tax under schedule E, as employment income. Accordingly, all the employment income rules apply and PAYE must be operated by the payer.
My understanding of this is that all agency workers are in affect treated as employees of the agency no matter whether they are self employed or not.
I would appreciate any words of advice from anybody in the Know.