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.
- Pay in Lieu of notice 108 3
- inheritance tax 56 1
- Using profits from Ltd company as start up funds for new venture 51 1
- Capital payments offshore trust 62 1
- Gift with reservation, IHT & CGT 93 1
- Splitting hairs with a national firm 1,161 9
- Sage 50 re-key - VAT problem 91 2
- Unreimbursed employee expenses 176 1
- Deduction from Salary 462 11
- Doctor and Locum Work 154 2
- State pension 142 1
- NALS Accountants Report 290 4
- Sage valuing foreign bank balances 259 6
- Has anyone read the implications of the Lisbon treaty? 1,130 40
- CIC Company 618 11
- simple one...capitalisation of legal fees on purchase of business 280 6
- This is getting boring 481 10
- 27,000 Really? 756 24
- VAT on printing when being a third party 111 2
- ACCA Cert/Dip in IFRS 208 3
- Property exchange - 8-year legal delay following fall-out 632
- Cancelled 377
- SAGE Payroll Data for Import to MS Dynamics AX 349
- Cancelled 323
- Have you staged yet for auto enrolment? 298
- Probiz 287
- Free-standing washing machine - unfurnished lettings 257
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 246
- Phishing emails purporting to be from CIPFA? 214
- Is this UK incapacity benefit taxable in UK or Jersey? 192