Government Release Response to the Onshore Employment Intermediaries Consultation

The government response to the Onshore Employment Intermediaries consultation has been released today, along with guidance on the issue of Direction, Supervision and Control. The government received 106 written responses including 35 from recruitment and employment businesses.

While implementation of the legislation itself has not been delayed, the reporting/returns requirements and associated penalties have, in direct response to consultation submissions flagging the dangers of rushing full implementation through by April 6th. These quarterly returns will now come into force in 2015, with the first report due by 5 August 2015, reporting on Q1.

The government has reiterated their position that PSCs are out of scope of the new legislation as the profits extracted from PSCs is already taxed appropriately.