Part 2

Employment income: charge to tax
Chapter 7

Application of provisions to agency workers

Agency workers

Treatment of workers supplied by agencies
44
1
This section applies if—
a
an individual (“the worker”) personally provides services (which are not excluded services) to another person (“
the client
”),
b
there is a contract between—
i
the client or a person connected with the client, and
ii
a person other than the worker, the client or a person connected with the client (“the agency”), and
c
under or in consequence of that contract—
i
the services are provided, or
ii
the client or any person connected with the client pays, or otherwise provides consideration, for the services.
2
But this section does not apply if—
a
it is 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, or
b
remuneration receivable by the worker in consequence of providing the services constitutes employment income of the worker apart from this Chapter.
3
If this section applies—
a
the worker is to be treated for income tax purposes as holding an employment with the agency, the duties of which consist of the services the worker provides to the client, and
b
all remuneration receivable by the worker (from any person) in consequence of providing the services is to be treated for income tax purposes as earnings from that employment,
but this is subject to subsections (4) to (6).
4
Subsection (5) applies if (whether before or after the worker begins to provide the services)—
a
the client provides the agency with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (2)(a), this section does not or will not apply, or
b
a relevant person provides the agency with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (2)(b), this section does not or will not apply.
5
In relation to services the worker provides to the client after the fraudulent document is provided—
a
subsection (3) does not apply,
b
the worker is to be treated for income tax purposes as holding an employment with the client or (as the case may be) with the relevant person, the duties of which consist of the services, and
c
all remuneration receivable by the worker (from any person) in consequence of providing the services is to be treated for income tax purposes as earnings from that employment.
6
In subsections (4) and (5) “
relevant person
” means a person, other than the client, the worker or a person connected with the client or with the agency, who—
a
is resident, or has a place of business, in the United Kingdom, and
b
is party to a contract with the agency or a person connected with the agency, under or in consequence of which—
i
the services are provided, or
ii
the agency, or a person connected with the agency, makes payments in respect of the services.
Pt. 2 applied (E.W.S.) (31.3.2017) by The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 (S.I. 2017/353), reg. 1(1), Sch. 1 para. 4(3) (with reg. 2(4)(5))
Pt. 2 applied (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 969(4)(a), 1329(1) (with Sch. 2 Pts. 1, 2)
S. 44 substituted (6.4.2014) by virtue of Finance Act 2014 (c. 26), s. 16(2)(11)