In the Autumn Statement 2013, the Government announced that it intended to tackle the use of employment intermediaries facilitating false self-employment to avoid employment taxes, ie to ensure that the correct amount of tax and NICs are paid where the worker is, in effect, employed.
On 10 December 2013, HMRC published a consultation on these proposals. Over 100 responses were received in response to the consultation. The Government has decided to proceed with strengthening the agency legislation contained in Chapter 7, Part 2 Income Tax (Earnings and Pensions) Act 2003.
The precise scope of the amended proposals remains unknown as the revised legislation has not been published. However, whereas under the original proposals the first return would have been due for the second quarter of 2014 (ie to be filed by 5 November 2014), in response to concerns which have been raised, the Government now intends to delay the first return until the first quarter of 2015/16. For the consultation documents click here.