So, following the Construction Industry Training Board case, agency workers are not employees and PAYE need not be operated on them. Needless to say, this was too good to last, and in FA 1975, s. 38, the Government brought in the agency rules that were until 2014 to be found in ITEPA 2003, s. 44–47. These reclassified most agency workers as if they were employees, so that PAYE had to be operated on their pay. (They came into the employed income net by virtue of these sections of ITEPA and into the PAYE net by virtue of reg. 10 of the PAYE Regulations.)

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