Key Fact Sheet: Employment Intermediaries- Reporting Requirements

3 March 2015

Why Introduced:

So HMRC can tackle Employment Intermediaries that use false self-employment and offshore locations to reduce taxes and avoid employment rights.

HMRC want to know amounts paid to workers supplied by the Employment Intermediary where PAYE has not been deducted.

Key Facts:

First Reporting Period: 6th April -5th July 2015

First Report Deadline: 6th August 2015

Report Frequency: Quarterly

Submission Method: Online

Information Required: Worker’s details and payments made for workers where you don’t operate PAYE. This includes overseas workers and payments where the worker is working in the UK or working temporarily abroad.

Template: https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...

Type of Workers: Umbrella Company, PSC, Self-Employed, CIS, Elective Deduction Model (or Hybrid). But not your own employees.

Detail required:

For All: Worker Details, National Insurance and Assignment Details (Start and End Date (if finished))

Additional information can be provided in place of a National insurance Number (see template).

For all except Umbrella Companies: Intermediary Details and Amount Paid

For PSC Only: Company registration Number of PSC

For Self-Employed, CIS and EDM/Hybrid: UTR

Reason why PAYE not operated: 6 Options i.e. Another Company operated PAYE.

Penalties:

For late, incomplete or inaccurate reports:

1st Offence in a 12 month period: £250

2nd: £500

3rd: £1,000

The Good News:

There will be no risk to recruitment agencies or their directors if they deal with a compliant PAYE Umbrella Company. An Umbrella Company ensures all tax is deducted at source meaning there is no risk of liability in respect of tax underpayment.

Umbrella.co.uk will be able to provide the required information in a suitable format and on a timely basis ensuring that your report can be compiled with the minimum of hassle.

For further information please contact one of Business Development team on 0800 121 6513 or by email: BusinessDevelopment@umbrella.co.uk

HMRC Link:

https://www.gov.uk/government/publications/employment-intermediaries-reporting-requirements