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ARTICLE · 19 MARCH 2014

Offshore And Onshore Employment

The government confirmed it will be taking forward the proposed rules on offshore and onshore intermediaries. The plans to review the use of offshore employment intermediaries were announced in the last budget, while an announcement on onshore employment intermediaries was made more recently at the Autumn Statement.

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The government confirmed it will be taking forward the proposed rules on offshore and onshore intermediaries. The plans to review the use of offshore employment intermediaries were announced in the last budget, while an announcement on onshore employment intermediaries was made more recently at the Autumn Statement.

The new legislation for both initiatives will take effect from 6 April 2014, so there is now very little time for employers, intermediaries and end-users to understand their withholding and reporting obligations. There has been reprieve on just the reporting requirements under both proposals until 2015/16. Many businesses have held off taking action pending the sight of the final regulations. Commercial issues such as renegotiating contracts to take account of increased costs have not been possible to conclude as suppliers have not been willing to negotiate based on only draft proposals.

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