Following the 6 April 2016 changes to the travel expenses for intermediaries, HMRC have published updated guidance on the meaning of supervision, direction or control (SDC).   

The published guidance includes several detailed examples and will replace part of HMRC’s Employment Status Manual in due course. 

There is no legal definition of the meaning of SDC, and its meaning has never been considered before any tribunal or Court.  The words therefore take their ‘ordinary meaning’ and the new guidance and examples provide further clarification as to how HMRC will interpret them and determine whether the SDC test is met.

Of particular note is that HMRC consider that those who work within a regulatory environment, such as health care workers, social care workers and teachers, are subject to SDC.  The new examples relate to these types of workers and to construction industry contractors.

Included for the first time is a section which details the sort of information that HMRC will gather when making enquiries into whether the SDC test is met, and how this will be used.

In addition to the SDC sections, the guidance also includes updates for Agency Workers and the conditions which need to be met for the agency regulations to apply.   This clarifies that there is no need for a contract for a named individual to exist between a client and an agency.  The legislation will still apply if any worker provides their services, even if that worker is a substitute.


HMRC Guidance Employment Intermediaries: personal services and supervision, direction or control

Our guide to:

Agency Workers: employment intermediaries rules (subscribers)

Agency Workers (freeview)