This guidance applies from 6 April 2016 and reflects the legislation as currently laid before parliament in the Finance Bill 2016. However, HMRC stresses that due to a drafting problem, ‘this legislation contains a technical error about where the supervision, direction or control test applies. This will be corrected at the earliest opportunity’.

Once the legislation has been corrected, the guidance will be updated, HMRC has now confirmed.

There will be a corresponding amendment made to the Social Security (Contributions) Regulations 2001 (SI2001/1004) for national insurance contributions purposes.

For practical purposes, HMRC said it ‘doesn’t consider that this correction will alter the ultimate result for the vast majority of workers currently engaged through employment intermediaries, including umbrella companies. Those who are working under supervision, direction or control will, in most instances, be akin to those who are an employee’.

Where a worker is engaged through what is commonly known as a personal service company (PSC) (including a managed service company (MSC), then the rules will remain unchanged.

The current HMRC guidance on intermediaries’ travel expenses, released on 27 April, is available here subject to amendment once the SI is passed.