Agency Worker Taxation Guidance

If you employ agency workers, you should be aware that HM Revenue and Customs have issued new guidance on how workers supplied through agencies should be taxed.



This reflects changes to the relevant legislation that apply to anyone who is employed through an agency (including self-employed people), where there is a contract between the agency and the ultimate employer and the services provided by the worker are performed personally.



The changes came into force in April 2014 and the general effect is that anyone supplied by an agency will be treated for Income Tax and National Insurance Contributions purposes as if they are an employee unless their work is not subject to the supervision, direction or control of the organisation for which it is being performed or some other person. Whether or not this is the case is always a question of fact, dependent on the arrangements in place, and is not merely decided by the views of the agency, worker or client.