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HMRC internal manual

Employment Status Manual

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Employment Intermediaries Reporting: Returns - what not to report

Income Tax (Pay As You Earn) Regulations 2003

Income Tax (Pay As You Earn) (Amendment No.2) Regulations 2015

Specified Intermediaries’ own employees

The specified intermediary is not required to report details of its own employees/workers who have been supplied to an end client and PAYE has been operated on those employees/ workers payments and reported to HMRC via RTI.

Specific categories of workers who are exempt

The new reporting requirement also does not apply where there are special exemptions under S 47(2) ITEPA 2003 for certain types of workers (eg:- actors, entertainers, photographic or artists models, services provided wholly at the worker’s own home etc.

Part 2 Chapter 7, section 47(2) ITEPA 2003 and Schedule 1, Regulation 2, Part 1 Column(B)(2) Social Security (Categorisation of Earners) regulations 1978 sets out all of the ‘excluded services’ which are outside the information reporting requirement as the provisions of the agency legislation does not apply to them. See ESM2032.

UK Continental Shelf Working.

If the workers supplied by intermediaries are providing their services at sea, are working in the oil and gas industry and are working wholly on the UK continental shelf (UKCS), there is no requirement to include them in quarterly reports. If the worker is not wholly employed on the UKCS and for example, works partly onshore, then they must then be included in the quarterly return.

Introduction Fees

Where an employment intermediary merely receives a fee for introducing a worker to an end client but is not paid for providing the worker’s services, then this arrangement would be out-side this agency legislation and that employment intermediary would have no information re-porting responsibilities.

Conversely, if the payment(s) the employment intermediary received related to the ongoing provision of the workers services to the client, the agency legislation would apply and the employment intermediary may be responsible for operating PAYE/RTI when the workers are paid and/or complying with the information reporting requirements. See ESM2034