§ Mr. David Mitchellasked the Chancellor of the Exchequer whether a registered self-employed person who in addition accepts work through an agency is obliged to permit the agency to deduct tax and national insurance contributions as if the taxpayer were an employee; and how many self-employed people fall into this category.
§ Mr. Robert SheldonA worker who renders personal services to a client under a contract with a third person, for example, an agency, is, in the circumstances set out in Section 38 of the Finance (No. 2) Act 1975, liable to PAYE deductions on his earnings from those services. The fact that he may be registered for VAT purposes would not of itself affect the liability to PAYE. National Insurance contributions are a matter for my right hon. Friend the Secretary of State for514W the United Kingdom economy in each year from 1970 to the latest convenient date, and the percentage increase in money supply for the same years.
§ Mr. Denzil DaviesFollowing is the information:
Social Services, but I understand that in cases of this kind the worker is liable to pay insurance contributions in respect of such earnings as an employee, whether or not he is registered for VAT. I regret that the information requested in the last part of the Question is not available.