HM Revenue and Customs (‘HMRC’) have updated their guidance about reports that intermediaries may have to send in relation to agency workers that do not have PAYE operated on their payments. This guidance was first published in September 2014 following the introduction of the Onshore Intermediaries (‘Agency Legislation’) taking effect in April 2014.
Changes to the guidance, specifically for intermediaries, include;
- A new link to existing guidance on “Employment status: employment intermediaries”
- It clarifies that if you are an intermediary that supplies workers to Intermediary 1 (the intermediary that has the contract with the client) then you don’t have to send a report, however you will have to provide details of the workers you supply to the intermediary with the contract.
- In this regard, the guidance gives the example that this would apply when you supply both workers and materials and supply different, and/or substitute workers.
- The guidance includes clarification that CIS workers must be included on the report, including any VAT.
- You do not have to include details of workers who; you don’t find work for in a period or aren’t paid in a period, provide their services from their home or premises not managed by the client – unless they have to because of the services and work they provide to the client, or they are actors, singers, musicians, other entertainers or are a fashion, photographic or artist model.
- Changes to the Personal Service Company (‘PSC’) section of the guidance include;
- Clarification of what a PSC is – “A PSC is an intermediary if they supply more than one worker, a substitute or other labour including any subcontracted workers.”
- If the PSC is supplied by an intermediary the worker’s details (usually the Director), the company name and registration number and the amount of payment will need to be supplied and included on the report for submission to HMRC.
- The Record Keeping section of the guidance includes more information in relation to what documentation should be kept to prove the reports sent to HMRC are correct. HMRC state that documents to keep include those that show; who was paid, how you worked out the amount your reported, why you didn’t operate PAYE on the worker’s payments, the worker’s payments were already included in an RTI submission by another organisation and why you left our required information or sent your report late (where applicable).
View the updated guidance here.