New rules introduced in April 2015 require employment intermediaries, who supply two or more workers to a client, to send HMRC details of workers where they don’t operate PAYE on the workers’ payments. HMRC has created these new rules to help combat issues of false self-employment and the abuse of offshore working by some intermediaries.
There is no requirement to send HMRC reports for UK employers that supply workers to end clients where nobody else is involved and where they operate PAYE when they pay those workers.
The report (or reports) must be sent to HMRC once every 3 months. The most recent reporting period ran from 6 April to 5 July 2016 and intermediaries must submit the report to HMRC by 5 August 2016. Intermediaries required to make a return must be registered with HMRC online services.
A report can be removed after it has been sent. The latest report may be removed by 5 November 2016. There are penalties for failure to submit a return on-time as well as for incomplete or incorrect returns. Penalties for a first offence start at £250. Guidance has recently been updated to take account of the new tax year and to make some other small changes.