Fitting together the intermediaries legislation

Key points

• No one in the supply chain is free from risk of having to meet a PAYE debt.
• The provisions operate in a tiered fashion not in isolation.
• HMRC may approach the paying agency because it may be the simpler option.
• Workers need to be sure the agency is paying the correct tax and National Insurance.
• The MSC legislation is contingent on the existence of a personal service between the worker and the client.
• Everyone in the chain should be certain of their position.

Michael Jackson sang: ‘I’m starting with the man in the [middle] I’m asking him to change his ways.’

We have changed the word in brackets – from mirror – but other than that it seems that the government and HMRC have heeded the singer’s advice with employment intermediary structures a sharp focus of activity for some time.

There is...