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Temp agencies and upcoming 4/20 IRS35 changes

Does the small company exemption for the upcoming IRS35 changes apply to the agency or end user?

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Client is a recruitment agent supplying temps to large companies, but the recruitment agency company is itself small.

When considering the small company exemption for the upcoming IRS35 changes for the private sector, do the small company limits apply to the agency or to the end user?  If to the agency, then the new rules won't apply as the agency is small, but if you have to look at the end user the new rules will apply, as they are large companies.  I'm struggling to find an answer to this!

Also, on the subject of Accounts for a recruitment agent.  Do the temps that the agency has on its payroll, that it invoices out to an end user, have to be included in the Agent's average number of employees?  This might effect the size of the recruitment agent for the purposes of small company Accounts, without the need for a consolidation.

 

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By ms998
18th Apr 2019 11:30

Its the end user that has to make the decision on whether the new rules apply. The exemption of small companies applies to end user.

https://home.kpmg/uk/en/home/insights/2018/11/reforming-off-payroll-work...

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