Reporting Requirements for Agencies
From 6 April 2015, intermediaries must return details of all workers they place with clients where they don’t operate Pay As You Earn (PAYE) on the workers’ payments. The return will be a report (or reports) that must be sent to HM Revenue and Customs (HMRC) once every 3 months.
If you only introduce workers to clients or supply workers to other intermediaries, and you aren’t involved in any arrangements that follow, you don’t need to send HMRC reports.
So what information will need to be included within the report?
If you are responsible for sending the report to HMRC, you should include:
HMRC has provided a technical specification for software developers and intermediaries to allow them to develop software for their clients or themselves.
So let's take a look in more detail at each of the areas that must be covered:
These are the personal details of the workers, including partners within a partnership and limited company directors, who personally provided their services to the client. These details must be included no matter how many intermediaries are involved in supplying the worker to the client. The intermediary sending the report must get these details from the worker or from any other intermediary that supplied the worker.
You should include each worker’s:
Payment and Working Details:
You must select the reason why you, the recruiter / intermediary didn’t operate PAYE on the workers payments from these options:
You will also need to include a:
Where the worker’s services are provided on different occasions to a single client in a reporting period the payments should be combined into a single figure.
Where the worker’s services are provided on different occasions to more than one client, a separate line and payment should be provided for each separate client.
If a bureau is used to pay another party on the worker’s behalf the name of the company or partnership should be reported, not the bureau.
If the worker was engaged to do the work and their payments have not been reported to HMRC using RTI, any worker engaged through options A to E, you must also include:
You may not know how much money the worker actually gets, but you will know how much money you paid to whoever supplied the worker to you. This may be another intermediary, limited company or PSC, or the worker themselves.
You must keep information, records and documents that prove what you sent to HMRC was correct. HMRC may ask you for this information.
This information should include any documents that show why you didn’t operate PAYE on the worker’s payments.
You should work with the workers, other intermediaries involved in supplying the workers, and the clients to get suitable evidence. HMRC must be satisfied that you didn’t have to operate PAYE on their payments.
You must keep the records in the form that suits you best for at least 3 years after the end of the tax year that they relate to.
For further information, please refer to the following link: https://www.gov.uk/government/publications/employment-intermediaries-reporting-requirements/what-the-changes-mean#information-that-should-be-included-in-the-report
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