advice please

[DS23]

whs

[noob23]

thanks again for the responses...

So basically it seems that according to new legislation, that HMRC will be looking at me as a PSC (ltd co) to prove I am self employed(according to the agency). The agency essentially wants me to show them in writing how I will fulfil the work at the client site but not be under the direction or supervision of the client... (determine own hours/where possible use own equipment etc)
It seems they apparently need to show that they have taken reasonable steps to ensure this, thus the letter is a way to indemnify them of any future recourse from HMRC, should they chase firstly myself and subsequently them for unpaid PAYE/NI...

Has anyone come across this at all? It really seems quite odd

[noob23]

well after a weekend of digging I believe I may have found what the agency is getting at...
hardly new legislation...
has anyone written a statement for their agency?

Agencies engaging workers on a self-employed basis

From 6 April 2014, UK agencies supplying workers directly to a client on a self-employed basis must have in their power or possession satisfactory evidence to demonstrate the worker is not subject to (or to the right of) supervision, direction, or control (see ESM2037) by any person, in relation to the manner in which the worker provides their services.

HMRC do not consider a signed declaration from the worker that simply states they are not subject to (or to a right of) supervision, direction, or control by anyone constitutes sufficient evidence for the purposes of the Agency Legislation.

If the agency is unable to produce satisfactory evidence when requested by HMRC, then HMRC may recover from the agency the income tax and NICs due from the worker’s remuneration.

[SimonMac]

well after a weekend of digging I believe I may have found what the agency is getting at...
hardly new legislation...
has anyone written a statement for their agency?

Agencies engaging workers on a self-employed basis

From 6 April 2014, UK agencies supplying workers directly to a client on a self-employed basis must have in their power or possession satisfactory evidence to demonstrate the worker is not subject to (or to the right of) supervision, direction, or control (see ESM2037) by any person, in relation to the manner in which the worker provides their services.

HMRC do not consider a signed declaration from the worker that simply states they are not subject to (or to a right of) supervision, direction, or control by anyone constitutes sufficient evidence for the purposes of the Agency Legislation.

If the agency is unable to produce satisfactory evidence when requested by HMRC, then HMRC may recover from the agency the income tax and NICs due from the worker’s remuneration.

But you are not self employed?

[noob23]

Hi Simon thanks for your swift response - I am a Director of my Ltd Co...
I am finding this all rather confusing - can you elaborate on your post please?

[sal]

Hi Simon thanks for your swift response - I am a Director of my Ltd Co...
I am finding this all rather confusing - can you elaborate on your post please?

Self employed = sole trader, As a director of YourCo you re employee of YourCo but NOT employee of the ClientCo. Common misconception is that because the ltd contractors are working for their own business they are "self-employed".

[TheFaQQer]

Self employed = sole trader, As a director of YourCo you re employee of YourCo but NOT employee of the ClientCo. Common misconception is that because the ltd contractors are working for their own business they are "self-employed".

Unless you have a contract of employment, you aren't an employee either.

[noob23]

thanks for the replies...
I found this - all very confusing as it doesn't appear to differentiate between a ltd company and self employed/sole trader instead referring to a "business"

https://www.ipse.co.uk/guides/new-re...ments-agencies