The intermediaries legislation is designed to prevent individuals who would normally be taxed as an employee, but are supplying their services through an intermediary – usually their own limited company known as a Personal Service Company (PSC) – from avoiding the tax and National Insurance (NI) that would otherwise be due on the employment income.
This report contains findings from qualitative research conducted with a sample of 41 employers from a range of sectors, both private and public. The research was undertaken by Ipsos MORI Social Research Institute, on behalf of HMRC.
We undertook this research to help us understand the impacts on employers and engagers if they were responsible for operating the intermediaries legislation. We also wanted to know what factors influence organisations to engage temporary staff.