View Authors March 2014
On 13 March 2014, the Government issued its response to the onshore employment intermediaries consultation, as well as practical guidance on what is meant by "supervision, direction or control". Despite strong opposition, it is full speed ahead with the new rules, which will be in effect from 6 April 2014. The legislation (which will directly affect intermediaries (such as recruitment companies) that do not apply PAYE and make NICs payments when supplying workers to hirers/clients) will require an intermediary that provides a worker to a hirer to assume that the person they have supplied is "supervised, directed or controlled" by someone (yes, anyone!) unless it has evidence to the contrary. Where an individual is "supervised, directed or controlled" by someone, the intermediary must itself apply PAYE and make the relevant NICs payments and deductions, unless it has evidence that these amounts are already deducted elsewhere.