We need to hear from you: HMRC’s intermediaries’ legislation
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HMRC is reforming the intermediaries’ legislation which could mean workers providing their services through an intermediary such as a private limited company might be required to pay the same income tax and national insurance as they would if they were an employee of their client. The status of the contractor will depend on the contract and working practices with the client.
This reform could mean private sector businesses assume responsibility for determining the employment status of an off-payroll worker. The status would have to be decided and communicated to the worker before the contract can start.
Only large businesses will be required to do this for their contractors ie those for which two of the following apply: more than 50 employees; annual turnover of more than £10.2m; or assets worth more than £5.1m.
Responsibility for communicating and enforcing status determinations is likely to be passed down the supply chain so even if the reform does not apply directly to you, your supply chains might be affected. For practitioners working through intermediaries there may be a direct impact on contracts with larger clients.