HM Revenue & Customs Intermediary Reporting Requirements
Make sure you are fully compliant
Wednesday 25th March 2015
Further to our recent blog and subsequent newsletter at the beginning of this month, you will hopefully be fully aware now, that as 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 (i.e. for self-employed workers and all other payments made to those who operate via an external PAYE umbrella company). The return will be a report (or reports) that must be sent to HM Revenue and Customs (HMRC) once every 3 months.
The net payments to workers won’t have to be disclosed to HM Revenue & Customs by the agency (as that information is provided by the umbrella company via their RTI submissions) but the agency will have to report the amount paid gross to the umbrella company, including expenses and VAT.
Deadlines for Agency Submission
With these new reports in place it means that HM Revenue & Customs will have access to both gross and net payments which will enable them to determine whether or not PAYE has been correctly applied and will also provide a comprehensive record of which recruitment agencies are working with which umbrella companies.
These new reporting requirements are yet another way in which HM Revenue & Customs are trying to tackle the issue of tax avoidance, by uncovering those less scrupulous Umbrella Companies that unfortunately do not operate in a compliant manner and hence, tarnish all those compliant companies, like ePayMe, with the same brush.
Penalties
With HM Revenue and Customs automatic penalties issued if reports are late, incomplete or incorrect, it is vital that your agency meets all deadlines. Fines are issued based on a twelve month period, with the first deadline date 5 August 2015 .