Central to the UK government’s programme for combating ‘false self-employment’ is the requirement for every recruitment business to submit to HMRC a record of all ‘contract and temporary workers’ who are not paid through its own PAYE scheme. This is according to Its International, which says that not every recruiter is aware HMRC expects the quarterly online returns to include overseas placements on fixed-term assignments.
Bridget Wood, a recruitment sector lawyer at law firm Mishcon de Reya LLP, commented, "Since April 2014, when changes to the agency tax legislation came into force, HMRC treats the relationship between a recruitment business and any worker it engages directly to personally provide services to a client as one of employment for tax purposes, unless it can be shown that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person. This presumption of supervision, direction or control has aided the government's attack on 'false self-employment’ and is likely to be used in amendments to other tax legislation which affects the recruitment industry."
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