Agency Quarterly Returns under Sec 44 ITEPA
I have received a circular letter and have had reports from tax lectures that it is believed that the quarterly returns under the above legislation involve a much wider audience than what one might reasonably assume from the word Agency.
I have regarded an Agency in these terms as a business that sells people's services as contractors to another agency or to an end user. Broadly speaking 'temps' or temporary staff under contract.
It is, however being suggested that the definition extends to cover, for example, a builder using an employee and a subby to build a conservatory,a car repairer using a subcontract MOT tester, a heating engineer using subcontract fitters and so on.
Should this be the case a huge pile of bureaucracy has been created which will push up the costs of business, slow up productivity even further and land HMRC with a shedload of data which they will not have the staff to handle.
HMRC's notes on the subject are inconclusive as there is no real definition of Agency. My reading tends to suggest that Agency means what I think it means but the penalties here are a bit eye-watering so I shouldn't like to find myself misled.
Any ideas? The first return is due by the 5th August for the quarter to 5th July so its a bit close and the return requires a lot of information.