Agency staff face tax status change

HMRC is to change the tax status of agency staff from self-employed to employee in a move that could see the Treasury collect an extra £520m next year. The bulk of the extra revenue will come from employers through NI payments, however, agency staff may suffer a cut in wages along with a higher tax bill, according to tax specialists. An HMRC spokesman said the updated rules “target those setting up mass-marketed artificial arrangements to present workers as being self-employed.”

Source:  The Daily Telegraph (11/02/2014)