This measure will do nothing to disturb the existing agency legislation at Part 2 Chapter 7 ITEPA 2003 (formerly) Section 134 Income and Corporation Taxes Act 1988. This is because Chapter 7 only applies to individuals. It does not apply to service companies.
Where the final intermediary in the chain is an employment agency, and a worker works directly through the agency, Chapter 7 will apply in the same way as it does now.
If a worker works through an intermediary (which is not a Managed Service Company) and contracts with clients via an agency, the agency may pay fees etc., on to the intermediary in the same way as at present. The intermediary will be obliged to deduct and account for PAYE/NICs on any income received from "relevant" engagements which fall within the terms of the IR35 legislation.
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