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Intermediaries report deadline looms on 5 August

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30th Jul 2015
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Starting from 5 August, employment intermediaries now have to send quarterly reports to HMRC giving details of all agency workers they supply to clients where they don’t operate a PAYE scheme. 

The new requirements for employment intermediaries that came into effect on 6 April will begin to bite next month, according to the Chartered Institute of Payroll Professionals.

The intermediary rules apply to any business supplying the services of an individual to a client, not just to those trading as agencies. The reporting regime was introduced as part of a continuing crackdown on “false employment” where agenices provide workers to businesses to circumvent agency PAYE and NIC rules.

Any intermediary that has a contract to supply workers to clients under the specified conditions is responsible for filing the reports.

The first three-month reporting period under the new regime ran from 6 April to 5 July, for which intermediaries need to start reporting from 5 August, with a final cut-off point for subsequent reports of 5 November. The regime will continue along the same sequences for subsequent quarters.

HMRC’s guidance says: “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.”

There is an online portal  for intermediaries to file their reports, and they must do so using HMRC’s report template to create the reports. 

And, of course, the new regime is accompanied by a penalty system for non-filing and late reports, starting at £250 for the first offence, rising to £500 for the second and up to £1,000 for third and later offences.

Already the ICAEW Tax Faculty and AccountingWEB members have raised numerous queries about how to deal with situations outside normal employment agency work. The faculty has been lobbying for more detailed guidance and a new guide for agents was published on 30 July.

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By Consultants4VAT
04th Aug 2015 10:40

HMRC fails us yet again

The client is a contractor and sub-contractor: Self-employed. He hires sub-contractors to complete the job.

 

As I was made aware of it being a potential case for the reporting, I phoned up the special advisory line (0300 055 5995) set up. This has happened three times and it has been reiterated to me that while there is no direct arrangement of supply with the customer, he is still required to be report his subbies. In spite of trying to enrol with the correct details, the useless portal continuously flags it as an error.

As the agents are not allowed, I had to ask the client to find time to try and then take it up with the helpline as they will not enter any discussion with me. Amazingly, the helpline refused to help the client informing him that he didn’t need to report (Albeit, the HMRC making a fool of an agent with a contradictory advice!). On returning to the above phone line, some John insisted the reporting was necessary, and he would get back with the guidance as to how to resolve the portal rejecting an enrolment. Of course, I have not heard from him as expected. In the meantime, complaint raised, had returned with the same unhelpful standard note asking the client to sort it out with the helpdesk!

I have now advised the client that I have exhausted all my efforts banging my head against a brick wall. And this also may be due the fact that I have registered him under the PAYE XP scheme. I have also told him to keep the records, and as usual if the HMRC surfaces smugly slapping the fine, he can only show his intentions and the HMRC’s failure, if that does any good!

I still have till tomorrow to help the client, and he will attempt to try today again. Have told him, if the HMRC helpdesk advises again not to file a report, get them to send an email with (or in writing) such a statement to keep on the file.

I will like to hear from the experts here their input. Thanks.

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