The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Intermediaries
Off-payroll working in the public sector 22 March 2016
The Government announced at Budget 2016 that it will reform the intermediaries legislation for public sector engagements. Liability to pay the correct employment taxes will move from the worker’s own company to the public sector body or agency / third party paying the company. Further to this announcement a technical note has been published which provides further details on the changes that are being proposed. The note gives not only an overview of the changes but also further technical details and the next steps, including the scope of a consultation document that will be published shortly. Legislation will be introduced in Finance Bill 2017 and will also be subject to full consultation. In partnership with stakeholders, HMRC will develop a new digital tool that will make the decision on whether or not the rules should apply as simple as possible and provide certainty.
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Employment status: employment intermediaries 7 April 2016
The guidance for employment intermediaries now includes a two minute YouTube video 'Who is an employment intermediary?'
An employment intermediary is a person or business who makes arrangements for someone to work for a third person. They are also often known as an ‘agency’ or ‘employment business’.
If you have any questions about reporting obligations a contact telephone number has now also been included within guidance - . 03000 555 995 , Monday to Friday, between 8:30am and 4:30pm.
You must send HMRC a special electronic return with basic information about your business and each worker you supply to a third party if you are a UK employment intermediary and you haven’t operated PAYE . The return is a report (or reports) that must be sent to HMRC at least once every 3 months, you may be charged a penalty if your report is late, incomplete or incorrect. You must use HMRC’s report template . HMRC has provided an online service for you to upload and send your reports.
Full details can be found at Employment status: employment intermediaries .
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Employment Intermediaries Co-ordination Unit (EICU) could help you avoid automated penalties 13 April 2016
The Employment Intermediaries Coordination Unit (EICU) has been set up by HMRC to help agencies and similar labour supply businesses comply with the PAYE, NIC and tax liability rules.
EICU Support The EIC Unit has been designed to provide extra support and will be able to talk callers through the special reporting requirements where staff fall outside of PAYE and NIC and they can be contacted on 03000 555995. PAYE and National Insurance Contributions (NICs) The Government introduced tightened PAYE and NICs rules for agencies and similar businesses supplying workers to work for their clients from April 2014 which has resulted in the agency, or a similar third party business supplying workers to clients, being treated as an employer who must deduct PAYE and NIC unless it can show there is no right to supervision, direction or control (SDC) over the worker.
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