IR35
What is the Impact on the Individual?
Anyone caught by the rules and regulations will have to perform a calculation for each tax year in which IR35 was deemed to apply.
If that calculation shows that there is a deemed payment due, Schedule E tax and NIC will be applied to that ‘deemed payment’.
What is the Impact on the Agency?
Quite often a recruitment agency will be involved in the chain between the individual and the client/end user of his/her services in addition to the PAYE umbrella company.
Legislation is drafted in such a way that it is unlikely that the recruitment agency would meet the conditions relating to an intermediary. Therefore the agency is likely to have no liability for tax and NICs.