HMRC this week published guidance on the agency rules in place from April 2014. What caught my eye as a tax barrister was HMRC’s views on the interaction with the Construction Industry Scheme (CIS). HMRC say a CIS worker will now have some PAYE jobs and some CIS, depending on their employed or not status. Given the construction industry has its own code in the CIS the new agency rules add yet another layer of uncertainty and complication. But HMRC think the agency rules will probably not impact workers under an intermediary or Personal Services Company (PSC). So tax fans and construction workers both can be happy for all those in Westminster and the BBC who though they look like employees to the public are actually not because they use a PSC.
Tax Barrister, Accountant