From 6 April 2015, the Agency Reporting Requirements change. 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 that must be sent to HMRC once every 3 months.
If you only introduce workers to clients or supply workers to other intermediaries, including umbrella companies. Or you aren’t involved in any arrangements that follow, you don’t need to send HMRC reports.
HMRC Agency Reporting Requirements
So what information will need to be included within the Agency Reporting Requirements report?
If you are responsible for sending the report to HMRC, you should include:
1) your full name, address and postcode
2) the worker’s personal details
3) the engagement and payment details
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. This includes 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 intermediary that supplied the worker.
You should include each worker’s:
Full name, address and postcode
National Insurance number – if they have one and you don’t know their date of birth and gender
Date of birth and gender – if they don’t have a National Insurance number
Payment and Working Details
You must select the reason why you, the intermediary didn’t operate PAYE on the workers payments. A choice from these options is offered:
C: Limited liability partnership
D: Limited company including personal service companies
E: Non-UK engagement
F: Another party operated PAYE on the worker’s payments
You will also need to include:
Unique taxpayer reference (UTR) – if they are self-employed or a member of a partnership
Start date of work with client
The start date is the first date that a worker provides their personal services to a client for which they are paid.
End date of work with client – if there is one.
The end date is the last date that a worker provides their services to a client for which they are paid.
Where the worker’s services are provided on different occasions. This is 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:
Total amount paid for the worker’s services
This is the total payment that you contracted for the worker’s services including any expenses and VAT.
This must be given in Great British pounds (GBP) or euros (EUR). If the worker was paid in another currency it should be converted into Great British pounds or euros using HMRC exchange rates.
Whether or not VAT has been charged on the payment.
The full name or trading name and address of who the intermediary paid for the worker’s services. This may be the worker’s company or partnership.
Companies House registration number
Only if the worker was engaged to do the work through a limited company (option D).
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