A Taxing Tale for Temporary Workers: Overarching Contracts

    August 2010

    An overarching contract allows temporary workers to link a series of separate assignments into a single ongoing employment with an umbrella company or employment agency. This allows the umbrella company or employment agency to treat each assignment as a temporary place of work (rather than a permanent place of work). The consequence is that, under the temporary workplace rules, the employer can effectively pay the worker for their travel expenses to such temporary workplaces free of income tax and national insurance.