Interventions: compliance routes: Employer Compliance: agency legislation
Subject to certain conditions, the agency legislation applies where a worker provides services to an ‘employer’ through a third party in such a way that, technically, the worker is not an employee of either. The third party will often be an employment agency but the legislation may apply to any worker who provides services through any third party. Before the legislation was introduced an agency worker who was not employed by either party was liable to Class 2 NICs and assessed under Schedule D.
For further guidance see ESM2000