Offshore employment intermediaries—income tax provisions and key practical considerations
Produced in partnership with Patrick Ford of Squire Patton Boggs

The following Tax practice note produced in partnership with Patrick Ford of Squire Patton Boggs provides comprehensive and up to date legal information covering:

  • Offshore employment intermediaries—income tax provisions and key practical considerations
  • Offshore employment intermediaries—pre-FA 2014 position
  • Offshore employment intermediaries—HMRC consultation and post-FA 2014 position
  • Amounts deemed paid
  • Continental-shelf workers
  • Travel expenses
  • Offshore employment intermediaries—key practical considerations

Offshore employment intermediaries—income tax provisions and key practical considerations

This Practice Note explains the income tax provisions that apply to offshore employment intermediaries, including a summary of the position before and after the changes introduced by the Finance Act 2014 (FA 2014), and key practical considerations to be aware of.

The offshore employment intermediaries legislation broadly applies when an offshore employment intermediary entity is used to facilitate the provision of the services of UK workers. The legislation is largely aimed at ensuring that employment taxes, in particular National Insurance contributions (NICs), are paid where offshore employers employ UK workers who are ultimately working for UK-based companies.

For details about the position for onshore employment intermediaries, see Practice Notes: Onshore employment intermediaries—income tax provisions and Onshore employment intermediaries—key practical considerations.

Note that when considering employment intermediaries structures, certain other rules should also be considered, namely:

  1. the general IR35 legislation (for further details, see Practice Note: IR35—the general regime)

  2. the IR35 regime applicable to off-payroll working (for further details, see Practice Note: IR35—off-payroll workers)

  3. the managed service company rules (for further details, see Practice Note: Managed service companies and the anti-avoidance legislation), and

  4. the rules requiring deduction of income tax in respect of payments or transfers to (or in connection with) non-resident performers

Offshore employment intermediaries—pre-FA 2014 position

The 'host employer' rules (as they were known) were designed to apply when:

  1. an

Popular documents