Product & services / Worker & contractor tax rules
Worker and contractor tax rules for recruiters
A helping hand through the complexities of tax rules.
- Personal service Company
- Self employed
- Umbrella
- CIS (Construction Industry)
- Consultancy
- Joint employment
Self employed
Agency worker?
CIS (Construction Industry)
Consultancy
Joint employment
Tax rules
IR35, PAYE, Statements of Work and umbrella tax
When you supply temporary or off-payroll workers to clients, the legislation is eye-wateringly complex. It can be an expensive liability waiting to happen.
We’re here to provide a helping hand through the complexities of worker and contractor tax rules for recruiters.
There are various models for providing contractor services. Whether you want expert guidance, specific recruitment contracts or IR35 training, we save you from getting on the wrong side of HMRC.
Just ask us for advice.
IR35 contracts
To reduce the risk of tax and employment claims, you need to use the right form of contract. You’re in safe hands, because we’re experts at this.
Lawspeed drafted the UK’s first ever IR35-friendly contract back in 1999. Since then, thousands of agencies and contractors have safely used them.
Today, these contracts are available to you on our digital platform Proterms. They have optional built-in limited company opt-out.
Umbrella contracts
As we write this, new umbrella regulations are on the horizon. We’re currently lobbying the government, leading the charge on your behalf.
As things stand, our recruitment contracts address every conceivable issue with using umbrella companies. They protect you from risk.
The regulations will no doubt change and, when they do, our contracts will be updated to cover the new risks. They’ll carry on protecting you.
IR35 and temporary worker training programs
Our training programs are specifically designed for you as a recruitment professional.
By arming you with knowledge about tax implications, we put the power back in your hands. You’ll avoid difficulties with HMRC further down the line, and strengthen your partnership with both clients and contractors.
Training can be in-house, via webinar, seminar or masterclass. What’s more, we can also include IR35 training for your clients and contractors.
You’ll have questions, so we’ve answered some of them here.
If your question doesn’t appear, please feel free to get in touch. We’ll happily provide the answer.
Agency Tax Rules – ss.44-47 Income Tax (earnings and Pensions) Act 2003 (‘ITEPA’) – requirement to apply income tax to ‘deemed employment’ income in tripartite contract arrangements. Employment status relevant.
IR35 – Chapters 8 and 10 ITEPA – Chapter 8 since 2000, Chapter 10 since April 2021, requirement to apply income tax to ‘deemed employment’ income where an individual provides services through an intermediary (e.g. a personal service company (‘PSC’) or partnership). Also known as ‘The Intermediaries Legislation’ and ‘the Off Payroll Rules’. Chapter 10 places primary obligation on hirers with potential liabilities on businesses in the supply chain. Employment status relevant.
Managed Service Company legislation - Chapter 9 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 – introduced in 2007. Tax obligation on providers involved in setting up and managing PSCs, with potential liabilities for referring agencies and directors.
Construction Industry Scheme (‘CIS’) - The Income Tax (Construction Industry Scheme) Regulations 2005 – requirement to deduct tax from payments made to suppliers in the construction industry (e.g. self employed contractors), level of deduction depending on status. Employment status relevant.
