The first reporting deadline for Intermediaries based on HMRC’s new reporting rules is coming soon - on 5th
August 2015. This applies to the reporting period from 6th
April to 5th
All intermediaries must now provide HMRC with details of all workers they place with clients where they do not operate PAYE on the workers’ payments. However, if the company only introduces workers to clients or supplies workers to other intermediaries, and they are not involved in any arrangements that follow, you do not need to comply with this requirement.
HMRC provide an online service for companies to create and send their report and it must be sent every 3 months.
Who does the requirement apply to?
In any 3 month reporting period, a company must send a report to HMRC if any of the following apply:
- You are an agency;
- You have a contract with a client;
- You provide more than one worker’s services to a client because of your contract with that client;
- You provide the worker’s services in the UK, or, if the services are provided overseas, that the person is resident in the UK;
- You make one or more payments for the services, including payments to third parties.
If you are a one-person limited company, or a personal service company that only supplies a client with one worker, you do not need to send reports to HMRC.
What the report should not contain:
Penalties for failure to comply with the reporting requirement
- Details of workers who are your own employees;
- Payment details where the payments have already been included as part of a PAYE Real Time Information (RTI) submission by any other organisation.
Automatic penalties will be given for failure to send a report, or for late reporting. Fines will be issued based on the number of offences in a 12 month period, as follows:
- First offence - £250
- Second offence - £500
- Third and subsequent offences - £1,000
Need any further information or guidance? Call our experts on the Peninsula Payroll Advice service on 0844 892 2772 Option 3 for payroll.