HMRC guidance on changes to agency worker treatment

03 June 2014

HMRC have issued detailed guidance on changes to the treatment of workers supplied through UK based agencies, employment businesses or other intermediaries.

The HMRC statement concerns new rules which apply from 6 April 2014 to the treatment of workers supplied through agencies or other intermediaries. The new rules affect workers who have previously been provided to end clients through an agency, to work on a self employed basis. The changes apply where

  • a worker personally provides their services - this prevents the use of a standard substitution clause to avoid the Agency legislation,
  • there is a contract between an end client (or someone connected with them) and any third party (ie: the agency), and
  • as a result of that contract the services of the worker are provided, or the client pays for the services to be provided.