Within Scope or Outside of Scope?

Not all workers will fall within the scope of the AWR; the following types of individual will fall outside scope:

• Those who are genuinely self-employed. E.g.  Sprite Construction engages self employed individuals or companies operating in the construction sector. As genuine self employed workers are outside of the scope of AWR there will be no change to the contractual arrangements we currently operate. We will continue to pay workers under the individual deduction rate advised by HMRC in accordance with the rules relating to the Construction Industry Scheme.
  
  
• Those who do not work under the supervision and direction of the hirer, e.g. staff who work as part of a managed service with the service supplier taking full contractual responsibility for the delivery of a service. Although Sprite does not operate this type of model it is possible that an Employment Business could consider whether certain supplies could be framed or managed as managed service supplies rather than staffing supplies although, if they did so they would no longer be acting as "employment businesses" in relation to such supplies because the staff would be acting for and under their control - not a third party's. This would require a completely different business model and would require the business to take on liability for deliverables and to insure accordingly.
  
  
• Those who supply their services through their own personal service company, who work under arrangements which fall outside of IR35 and who are genuinely in business on their own account.

Generally speaking all other workers supplied by one organisation to work temporarily under the supervision and direction of another will be within the scope of the AWR.