Offshore - Legislation Overview

The Offshore Employment Intermediaries legislation closed the loophole which enabled UK-based intermediaries within the contractual supply chain to avoid PAYE and NIC responsibilities, which hindered the appropriate collection of tax and National Insurance. The Offshore Employment Intermediaries legislation requires the UK-based company with the direct contractual relationship with the end-client (“intermediary one” which is usually a recruitment agency in the supply chain) to become responsible for PAYE and NIC deductions, unless it can be demonstrated that these are already being deducted elsewhere in the chain (i.e. via a compliant UK umbrella company such as that operated by Liberty Bishop).

To give teeth to the legislation, “intermediary one” is required to provide HMRC with a quarterly report listing ALL workers that have not been paid under its own PAYE, and to supply information as to why this wasn’t the case.

"Rest assured Liberty Bishop would never endorse an offshore solution"

Onshore legislation - Overview

The Onshore Employment Intermediaries legislation attempts to tackle the avoidance of tax and NIC’s that results from false self-employment; the scenario where an individual is registered as self-employed and paying tax and NIC’s on a self-employed basis, but their actual working practices indicate that they aren’t genuinely self-employed because they are under (or subjected to the right of) supervision, direction and control.


The Onshore Employment Intermediaries legislation requires the company with the direct contractual relationship with the end client (“intermediary one” usually a recruitment agency in the supply chain) to become responsible for PAYE and NIC deductions, unless it can be demonstrated that these are already being deducted elsewhere in the chain (i.e. via a compliant UK umbrella company such as that operated by Liberty Bishop), or that the worker is genuinely self-employed due to them lacking supervision, direction and control in the manner in which they carry out their work.

To give teeth to the legislation, “intermediary one” is required to provide HMRC with a quarterly report listing ALL workers that have not been paid under its own PAYE, and to supply information as to why this wasn’t the case.

"Liberty Bishop will ensure this legislation is adhered to"

How much will I Earn

How much
will you take
home?

Click to View
Contact Liberty Bishop

CONTACT
US

Click to View