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E4.225 Employment status of workers supplied by agencies—overview

This article concerns provisions on workers supplied by agencies; it does not cover the separate IR35 provisions on services provided through an intermediary, which are described in Division E4.10¹.

Nearly all agency workers are now deemed as PAYE employees because of tax legislation², applicable if the individual worker is subject to supervision direction or control (by any person), with equivalent matching legislation applying for NIC purposes³. The agency rules can also affect the recovery of PAYE debts relating to avoidance activity from company directors (see E4.1188) and continental shelf workers (see E4.1184).

For agency employers which are neither resident nor present in the UK, see also E8.701, E8.703, E4.1184 and E4.1188.

Within this guidance material the term 'employment agency' should be assumed to include an 'employment business' (the business of supplying people in the employment of the person carrying on the business, to act for, and under the control of, other people in any capacity).