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.
- No more tax returns... 1,228 12
- bookkeeping system 516 8
- AIA/Capital Allowances 161 5
- Spanish Assets taxation - UK Residence 160 3
- RTI and Advances to Employees 329 7
- Selling to USA, Delivery to Poland, VAT? 75 1
- HELP CT Return filed but doesnt match up HMRC's AP 183 6
- Stand alone practice management software 1,657 23
- International VAT 96 2
- CTA 182 2
- Office 365 vs. Google apps 605 9
- Anyone else experiencing issues with sage 50 payroll 694 21
- Insurance payout 106 1
- Non-UK resident - where to pay income tax? 523 11
- RTI / P11d 152 2
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,099 21
- Guaranteed rents - which is the turnover? 275 9
- Windows 7 to 8 should I go Excel or Office 365 374 3
- Company Share Buy Back 283 7
- Sage 200 question 188 3