IR35:
Agency - Question 4
As an agency we supply intermediaries to clients. Is it true that if we (the agency) make payments direct to the worker we would be liable for the tax/NICs? And, if so, would expenses payments represent remuneration?
Agencies making payments directly to individuals may be liable for PAYE tax and NICs if those payments are treated as chargeable to tax as employment income and subject to Class 1 NICs under the agency legislation. This was the case before the IR35 legislation.
If the agency makes other kinds of payment (e.g. dividends) directly to the worker which could reasonably be taken to represent remuneration then the IR35 legislation could apply. We would look to the agency for the appropriate tax/NICs. Reimbursement of expenses would not be considered to represent remuneration.
| Home | ||||
