What intermediaries will be affected?
Anyone supplying their services to clients through an intermediary such as a service company or partnership will need to think about the new rules. The most usual sorts of intermediary are service companies or partnerships, which are normally under the control of the worker. The worker can then take the money out of the service company in the form of dividends instead of salary, and therefore make substantial savings in return for the risk of running their own business. But only those contracts which would have been contracts of employment with the client if the worker had worked directly to them instead of through an intermediary will be affected. If there is more than one intermediary between the client and the worker, any intermediary which makes payments direct to the worker may be affected. However, the intermediary with the direct link with the worker will normally be the intermediary responsible for complying with the legislation.
