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<p>Where a contractor is engaged, the identity of the employer will depend on the
facts of the engagement and the tax rules that apply to that engagement. For example,
if a contractor is employed by an employment agency or umbrella company, who then
supply the contractor to the client organisation, that agency or umbrella company
will be the employer.</p><p> </p><p>Conversely, where the Agency legislation applies
to an engagement, the first agency in the labour supply chain is usually deemed to
be the employer for tax purposes. However, if the contractor is engaged under the
current off-payroll working legislation, the person who pays the contractor’s intermediary
will be the deemed employer for tax purposes. From 6 April 2021, the off-payroll working
rules are changing so that the deemed employer will be the party in the labour supply
chain who meets the relevant conditions.</p>
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