Employment Intermediaries

Employment intermediaries: rules and reporting requirements

An intermediary is any person or business that arranges for an individual to work for a third party, or pays them for work done for a third party. This is commonly referred to as an employment agency or employment intermediary.

HMRC reporting requirements

HMRC requires intermediaries to report details of any workers supplied to clients where PAYE has not been operated. This doesn’t necessarily indicate a problem as there are legitimate reasons why PAYE may not apply. So you must disclose:

• The workers you’ve supplied, and
• The reason PAYE was not applied

Who this applies to

You must submit reports if:

• You supply any worker other than yourself to a client, and
• That worker is not paid through your PAYE system

This includes workers operating through their own limited companies

You do not need to report if:

• You are a one-person limited company supplying only your own services
• You are providing a complete service to a client (rather than simply supplying a worker’s labour)

 Reporting deadlines

If you are required to report, the deadlines are as follows:

Penalties

Failure to submit accurate and timely reports may result in penalties from HMRC.

Further Information

Full information on this can be found on HMRC website here.

If you do supply any workers to clients that are not paid through PAYE by you (for any reason) or have any concerns please book a free online meeting to discuss this further.