Employment intermediaries are responsible for ensuring that Income Tax and National insurance (NI) is paid for the workers they supply. An employment intermediary is a business which contractually arranges for a person to work for a third person who then pays the employment intermediary for the worker’s services. Special ‘agency’ rules apply for paying the tax, see the Income Tax (Earnings and Pensions) Act 2003 section 44. The intermediary also has to submit a retun. HMRC have updated their “Employment status: employment intermediaries” guidance on this.
Tax Barrister, Accountant