Legal reason agencies won't consider self-employed contractors ?

[Boo]

Hi,

Way back around 1979 I was an apprentice at Marconi and all the contract wiremen overnight went from self-employed to being incorporated. I understood this to be due to a piece of legislation that the then new Tory government had brought in under Margaret Thatcher. Can anyone tell me what this piece of legislation was, and point me to the relevant text ?

I am already aware of the later enaction of Section 134 of the Income & Corporation Taxes Act 1988 which I understand has some bearing on this.

Thanks,

Boo

[moggy]

http://www.hmrc.gov.uk/leaflets/es-fs1.pdf

this may help

[malvolio]

AFAIK it's currently enacted as S44-47 ITEPA 2003, although that may have been updated by now. Basically it passes liability for unpaid personal income tax up the food chain to the first "employer" company. That would have been the agency, so they now insist on YourCo taking that spot.

[Jessica@WhiteFieldTax]

Picking back through legislation on Legislation.gov.uk is a pigging nightmare, but ITEPA is a consolidation / rewrite of earlier legislation.

So S44 ITEPA 2003 et seq is the rewrite and consolidation of S134 ICTA 1988 - however the ICTA reference itself is a reenactment of earlier legislation - ISTR originally the clause was in one of the Finance Acts.

Picking your way through Statutory Instruments is even worse *looks at job I have been putting of for two months on drafting an appeal*

[Boo]

Thanks for all the replies, but I am specifically looking for the regs the Thatcher govt enacted in 1979 or 1980, anyone happen to remember ?

Boo2

[malvolio]

Thanks for all the replies, but I am specifically looking for the regs the Thatcher govt enacted in 1979 or 1980, anyone happen to remember ?

Boo2

Which bit of "the answer is S134c-cum-S44-47 ITEPA 2003" didn't you understand?

It's from 1978 so you need to look at Budget 1977 for the origins.

[Boo]

Which bit of "the answer is S134c-cum-S44-47 ITEPA 2003" didn't you understand?

The part where it mentions 1979/1980 ?

Boo

[malvolio]

The part where it mentions 1979/1980 ?

Boo

OK, so which bit of "Budget 1977" confuses you?

[Jessica@WhiteFieldTax]

The part where it mentions 1979/1980 ?

Boo

You'll need a table of origins for ICTA 1988 - I've tried google, it's not helping. You may get some luck if you post on AccountingWeb, but is fairly esoteric now.

The NI element appears to be SI 1978 no.1689 but I'm not having any luck finding the original Income Tax source.

[stek]

Legal reason agencies won't consider self-employed contractors ?

I thought it was the Agencies Act 1979 but to be honest that's a pull from the back of my murky mind, was reading a lot of Mary Millington at the time...