The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Special reporting requirements From April 2015, an employment intermediary reporting requirement for people supplying workers to clients but who are outside the 2014 ‘agency’ rules was brought in. This resulted in the requirement for the intermediary to submit a quarterly return to HMRC with details of the workers being supplied and of who they are paying. Broadly speaking, if you supply two or more workers to a client and they are not taxed under PAYE then your business needs to send a return. For full detail sees the intermediary guidance . Automated penalties There has been a period of adjustment to allow for intermediaries to adapt to these new reporting requirements since 6 April 2015. However as from 5 August 2016, when the first quarterly information report for the 2016-2017 tax year becomes due to be filed, HMRC will begin to charge automated penalties for late returns.
Penalties are £250 for a late return, rising to £500 then £1,000 for subsequent late returns. Failure to file a return could result in a penalty of up to £3,000.
The EICU Unit can be contacted on 03000 555995.
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Employment intermediaries: reporting requirements 21 April 2016
Additions and changes have been made to the guidance for employment intermediary reporting from 6 April 2016.
HMRC has not provided any detail as to what exactly has been changed so if the guidance applies to you we would recommend that you review the reporting requirements .
An intermediary is any person who makes arrangements for an individual to work for a third party or be paid by the intermediary for work done for a third party. An employment intermediary is also commonly referred to as an agency.
Intermediaries must return details of all workers they place with clients where the intermediary doesn’t operate Pay As You Earn (PAYE) on the workers’ payments. The return is a report (or reports) that must be sent to HMRC at least once every 3 months. Intermediaries can decide how frequently you upload and send your reports. This could be weekly, monthly, once for each period, or whatever fits in best with how they work.
The intermediary that has the contract with the client is responsible for sending the report (or reports).
You must use HMRC’s report template to create the reports. HMRC has provided an online service for you to upload and send your reports.
You don’t have to send HMRC reports if all the following statement are true. You: are a UK employer supply workers to provide their services to end clients and nobody else is involved operate PAYE when you pay those workers.
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Employment intermediaries: travel expense guidance 28 April 2016
Guidance about the treatment of travel expenses for workers providing personal services to clients through employment intermediaries has been published; however the legislation it reflects contains a technical error about where the supervision, direction or control test applies.
This guidance applies from 6 April 2016 and reflects the legislation as currently laid before Parliament in the Finance Bill 2016. However, this legislation contains a technical error about where the supervision, direction or control test
The Chartered Institute of Payroll Professionals
Policy News Journal
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