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HMRC internal manual

Employment Status Manual

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HM Revenue & Customs
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Employment Intermediary Reporting: Returns - Completing the Template - The payment details

Regulation 84G (c)(i)(ii) (iv) (v) 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 the provision of a worker’s services to a client, and that payment has not been included in an RTI return, then the Specified employment intermediary has to provide HMRC with details of the payment.

The Specified employment intermediary has to enter on the reporting template details of the payment(s) to workers made in the previous quarter. The obligation to notify HMRC of the payments is when they are actually made - not when the amount was billed, invoiced or recorded in the accounts, if that is a different date.

The Specified employment intermediary can choose either to aggregate all of the payments made in the quarter relating to a particular worker, or they can report each payment on a separate line on the return for each client.

The Specified employment intermediary has to enter:

  • The amount of the payment(s) made in respect of, or in connection with, the provision of the worker’s services - this will be either the sum paid to a worker, or the sum paid to a third party (for example a PSC, or Umbrella Company, or similar structure supplying the workers).
  • The name and address of the person the specified employment intermediary paid, if this was not the worker.
  • Company Registration Numbers - if the person the specified employment intermediary paid was a Ltd company - for example an Umbrella company, PSC, or similar structure supplying workers.
  • If they are paying a partnership, they must enter the partnership’s trading name.
  • Whether the payments include VAT.

Workers who are not paid during a reporting period but remain on the agency’s books should not be reported on again until they are paid at that future date.

Where the workers are operating within the Construction Industry Scheme and are paid under deduction of tax the Gross amount (prior to deduction and inclusive of VAT) should be declared upon the quarterly return.

When returning the amount of the payment, do not record minus or negative amounts. Adjustments should be included using the replacement report facility.

‘Currency’ must be Great British pounds (‘GBP’) or euros (‘EUR’), even if the worker is paid in a different currency. The Specified employment intermediary should convert any other currency the amount into one of the accepted currencies using HMRC’s latest exchange rates or such other equivalent prevailing rate.