HMRC have this morning released their new online tool to help you check the employment income tax status of an individual who provides services directly or indirectly to you.

As we highlighted in our alert in January this will be important because from 6 April 2017, any such individual who is a deemed an employee must be paid through PAYE. If you engage such a company direct then it will be through your PAYE, however, if you use an agency which engages that company it will be the agency's PAYE.

At the moment this only applies where the client is a public sector body, but we would not be surprised if this is extended to private sector bodies in the next few years.