07.04.15 Agency Legislation Reporting Requirements – are you sure of the details?

From 6th April 2015 all employment intermediaries, who supply workers to end user/hirers, must ensure temporary worker payments which they do not subject to PAYE are reported to HM Revenue and Customs (HMRC).

The Facts;

• Reports must be sent by intermediaries who have a contract with a client and who make one or more payments for a worker’s service;
• Workers must be included on the report if they provide their services in the UK, or, must be resident in the UK if their services are provided overseas;
• There is no need to include details of workers who are employees whose payments have been subject to PAYE and have been included as part of a PAYE Real Time Information (RTI) submission;
• Personal Service Companies (PSCs) and one man limited companies that only supply a client with 1 worker do not need to send reports;
• PSCs supplying more than 1 worker, including subcontracted workers, will be acting as an intermediary and will have to send reports;
• Intermediaries must include their own name and address, workers’ details and the worker’s engagement and payment details.

Deadlines

Penalties

If a report is late, incomplete or incorrect you may be charged a penalty which is based on the number of offences in a 12 month period;

Continuous failures, where reports are not sent or they are sent late, may result in a penalty for every day the report is not sent. If a report is replaced before the deadline of the next reporting period, as detailed above, HMRC will consider this when deciding if the penalty must be paid. There will be an appeal process for the penalties.

View the HMRC guidance (including the report template) here.

View our previous article regarding the legislation published about the reporting requirements here.

If you need any further clarification regarding the reporting requirements and additional advice please do not hesitate to get in contact with us at Aspire Business Partnership LLP on 0121 445 6178 or email enquire@aspirepartnership.co.uk.