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.
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 205 7
- What quality paper do you use for correspondence? 413 15
- Dress code 70 3
- directors control and tax problems 127 4
- Bulk Invoicing 164 6
- What would you do in this situation? 515 12
- Travel and Substinance expenses while abroad 139 3
- Help Required 292 6
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 230 2
- What's in a name ? 263 4
- ATED Penalties 268 1
- late second payment on account 163 2
- US royalties 91 2
- Project being run jointly 134 2
- Reclaiming overpaid employer NI contributions 180 2
- Straightforward email correspondence or PDF letter attached to blank email? 200 3
- Sole trader mix up 299 4
- Vat on 'pig slurry' - palatable subject I know! 751 6
- FILING COMPANY ACCOUNTS 903 27
- Staff accommodation without a rental value or RV 212 4
- CTA study material 701
- Anyone have clients that use Pay4Later to offer customers credit? 424
- Employment related securities question 266
- AIM Stocks and IHT 245
- Tax Relief for overseas employees 199
- Expat pension contributions? 186
- Trust for Employee 186
- Raiders of the Lost Tax File 169
- Quickbooks losing VAT return data 157
- Recommendations for Ross Martin Tax consultancy 2014 120