We’ve been asked lots of questions about the new reporting requirements which come into force in April. We’ll do our best to answer but even the updated HMRC response that was published on Tuesday 4th February was slightly unclear.
What is for certain is that agencies will be required to report on all workers who they do not directly pay themselves, including Self Employed, Umbrella and PSC’s. The information then appears to vary depending on which category you’re dealing with.
For ALL workers the following information will need to be reported:
- Worker name
- NINO
- Where no NINO is available: Date of Birth and Gender
- Worker Address and Postcode
- Details of how engaged (i.e. Self Employed / Umbrella)
- Start date and end date of engagement
- Name of company paid by agency for workers services and address
- Company House registration number of above company
IF THE WORKER IS ENGAGED ON A SELF EMPLOYED BASIS THE FOLLOWING IS NEEDED
- Unique Taxpayer Reference (where self-employed or a member of a partnership)
- Amount paid for the workers services inclusive of VAT
- Has income tax been deducted from these payments
As you can see the administration burden is substantial and even greater where Self Employed workers are utilised. As expected HMRC seem very keen to establish where agencies are still using self-employed workers so they can verify their status has been correctly assessed.
It will be more important than ever for agencies to ensure that anyone they treat as self-employed can legitimately be considered as such and that their records on all workers are up-to-date and detailed.
There is no doubt that this is going to increase the burden of administration for many recruitment agencies. At Exchequer Solution we can help. We will provide you with ALL the information required for the report. We will do this on time and free of charge for ALL workers that you have registered with us.
If you have any questions about the new regulations please contact your Account Manager for advice on 01244 500195.
The official Draft Guidance is has now been published – https://www.gov.uk/government/publications/employment-intermediaries-report-template
