Employment Intermediary Reporting: Meaning of Specified Employment Intermediary - exception where RTI operated on the payment for the services
Regulation 84E (d) Income Tax (Pay As You Earn) Regulations 2003
Income Tax (Pay As You Earn) (Amendment No.2) Regulations 2015
This measure is all about agencies telling HMRC about the workers they supply to end clients who have been left out of their RTI return(s).
Regulation 84E sets out some conditions that all have to be met for there to be a specified employment intermediary who is obliged to send an information return.
One important condition for there to be a specified employment intermediary is there has to be a payment made in connection with the services provided by a worker that has not been included in an RTI return either because
- There has been a reporting failure ( an error or default)
- There is no statutory obligation to include the payment in an RTI return because the worker is not an employee, nor were they treated as an employee for tax purposes.
An agency that operates PAYE for all its workers is therefore excluded from having to supply HMRC with an Information return.