Employment agencies: reporting requirements

From 6 April 2015, many employment intermediaries are subject to new quarterly reporting rules and must send information about workers, where they don't operate Pay As You Earn, to HMRC using a specified template. The rules are far reaching and have some surprising consequences for those who may not even realise they are affected. You don’t have to be called an employment agency to be within these new rules and other intermediaries will be caught too.

Reporting requirements

In summary, this new legislation establishes that an intermediary may need to send reports to HMRC, if it:

  • is an agency
  • has a contract with a client
  • provides more than one worker’s services to a client because of a contract with that client
  • provides the worker’s services in the UK - or if the services are provided overseas, that the person is resident in the UK
  • makes one or more payments for the services (including payments to third parties). 

Note that this only applies where the services of more than one worker are supplied, so a single person personal service company is not affected by these requirements.

An intermediary must provide the worker’s details and payment details for workers where it hasn’t operated PAYE. This includes overseas workers and payments where the worker is working in the UK or working temporarily abroad.

You don’t have to include any details of workers who are your own employees.

You don’t have to include any payment details where the payments have already been included as part of a PAYE Real Time Information (RTI) submission by any other organisation.

 There are deadlines for making the new quarterly reports and penalties for those who fail to comply.

Reporting period

Deadline date

Date you can replace a report by

6 April to 5 July

5 August

5 November

6 July to 5 October

5 November

5 February

6 October to 5 January

5 February

5 May

6 January to 5 April

5 May

5 August

HMRC has now published its guidance, Guidance: Employment intermediaries: reporting requirements.

Please let us know if you have any questions in relation to reporting requirements by employment agencies, we would be delighted to provide further information and guidance to assist you. In fact, we can arrange the whole reporting process for you too.

You can email any questions to gavin.fernandes@mggroup.co.uk alternatively, we could arrange a face to face meeting at your offices to discuss above points.  We look forward to hearing back from you!

Gavin Fernandes FCA, CTA
MG Group

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