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HMRC internal manual

Employment Status Manual

Employment Intermediary Reporting: Introduction


From 6 April 2015, certain agencies are required to send to HMRC an electronic return giving details of the workers they supply to their clients if those workers are not included within Real Time Information (RTI).

The returns are sent by the agency to HMRC each quarter and the results are then used to identify where the agency legislation is not being fully complied with and to identify any resulting tax/NICs at risk.

Broadly speaking, the agency is required to tell HMRC about the people it is not operating PAYE for because the agency is treating those individuals as self-employed contractors, or because the agency considers the agency legislation does not apply, as the workers:

  • are supplied by another agency
  • are supplied by a partnership
  • are supplied by an “umbrella “ company
  • are supplied by a Personal Service Company
  • are supplied by some other legal structure

In summary, the agency has to file information to HMRC each quarter where:

  • they are an employment intermediary
  • they have a contract with a client
  • they provide more than one worker’s services to a client because of their con-tract with that client
  • they make one or more payments for the workers services (including payments to third parties)
  • the workers are resident/non-resident in the UK and are working wholly or partly in the UK, or if the workers are working outside the UK, they are UK residents.

The next section of the Manual sets out in detail:

  • who has the obligation to file a return
  • what they have to tell us upon the return
  • when and how they file a return
  • the penalties that are charged if they file a return late and/or file an incorrect or incomplete return.