ESM2004 - Agency workers: individuals/personal service

The agency legislation applies to contracts between third parties and individuals. It does not apply to contracts between third parties and companies. Where the contract the agency has is with a company, then the legislation will not operate to treat services rendered under that contract as being the duties of an office or employment.

However, the individual carrying out the work is likely to be an employed earner liable to pay Class 1 NICs, and chargeable to tax under Schedule E/on employment income, in respect of the remuneration from the company - as a director and/or employee of the company. If not, it is possible that the legislation will apply to the contract between worker and company. See ESM2014 in this connection.

The worker must provide the services personally.