As previously reported, in the Autumn Statement 2013, the Government announced that it intended to tackle the use of employment intermediaries to facilitate false self-employment to avoid employment taxes.

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.

HMRC has now updated its Employment Status Manual to include guidance on the new legislation on employment intermediaries, introduced in the Finance Bill 2014.

To read HMRC’s news update on the guidance click here.

To access the Employment Status Manual click here.