Important Agency Update for Limited Company Contractors

Dear Limited Company Contractor,

Important changes for limited company contractors from

6 April 2020 - Delayed to April 2021

Currently, any agency worker who supplies their service directly to a public sector body via an intermediary (such as a limited company) is subject to, unless certain rules apply, having any payment due to them from their agency being subject to tax and national insurance.

From April 2021 this legislation is being widened such that services provided directly to the private sector will also be subject to tax and national insurance. 

This means from April 2021, all agency workers supplied by the A24 Group  in both the public and private sectors will be treated as if they are PAYE and tax and national insurance will be deducted.

We cannot provide you with tax advice – you should take independent advice – but it is our understanding that these changes should not increase your/your company’s tax liability, rather will affect the timing of the payment thereof. 

Naturally payments to you will still be fully reported back to yourself by our usual method such as emailing/posting of your remittance advice each time you are paid so that you or your accountant can deal with your limited company tax affairs accordingly.

It is important that you familiarise yourself with the IR35 update and more information on this can be found on the HMRC website in particular:  

https://www.gov.uk/guidance/understanding-off-payroll-working-ir35

If you have any questions please do contact the payroll department.

Yours sincerely,
A24Group Payroll Department