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HMRC internal manual

Employment Status Manual

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Employment Intermediary Reporting: Returns - Completing the Template - Giving the reason why PAYE/RTI not operated

Regulation 84G (c)(iii) Income Tax (Pay As You Earn) Regulations 2003

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

Where a payment is made in respect of, or in connection with providing the services by the worker to the client and that payment has not been included in an RTI return, then the Specified employment intermediary has to tell HMRC why.

This has been simplified in the return so that a Specified employment intermediary chooses from a list of suggested categories the option that seems to them to best describe their situation. If more than one option seems to them to apply, they should choose the highest in the list.

Regulation 84G ( c)

Worker engagement categories

A Self- employed

B Partnership

C Limited Liability Partnership

D Limited Company

E Non-UK engagement

F PAYE Operated elsewhere These categories encompass self-employed workers and people employed by types of partnerships. Where the reason given is self-employment (A-C) the specified intermediary will need to be satisfied that there is also no right of supervision, direction or control for any workers and that PAYE does not apply. See ESM 2001 onwards

Category D relates to Ltd companies (including PSCs and umbrella companies) that supply a worker to the specified employment intermediary.

Where payments are made to the Ltd company, the company name and address details and company registration number must also be reported including umbrella companies.

Category E refers to workers supplied in the UK by overseas intermediaries.

Category F refers to workers who have had PAYE operated elsewhere in the UK. e.g. employed by another intermediary. If Categories A to E apply also, then this box will not be ticked.