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The Impact of New Rules Affecting Temporary Labour Costs in The Construction Sector

This study reviews the impact of the new tax rules, introduced on 6th April 2014, targeted at reducing so called ‘false self-employment’.

After a whirlwind consultation period from December 2013 to March 2014, the Government introduced these significant rules which require agency staff to be taxed as employees - unless the employment agency has evidence that the worker will not be supervised, directed or controlled by anyone.

We also wanted to look at the impact on employment agencies and assess whether the thousands of organisations in the UK affected by these rules are ready for further changes in April 2015. At this point it will become compulsory for employment agencies to report individuals that are not taxed as employees to HMRC, or face financial penalties.

We believe these are critical issues for employment agencies and construction businesses.

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