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HMRC internal manual

Employment Status Manual

HM Revenue & Customs
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Employment Intermediary Reporting: Record Keeping Requirement

Regulation 84H Income Tax (Pay As You Earn) Regulations 2003

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

The specified intermediary must keep and preserve the records it needs to complete the in-formation return.

These records have to be kept for not less than three years after the end of the tax year to which they relate.

The records will have a direct bearing on the categories A-F and the other information contained within the completed return.

This is important because those records will serve as the evidence why the specified intermediary did not deduct PAYE/NICs as an employer from payments that it made to workers who they supplied under, or in consequence of, their contract with an end client.

These records will typically include:

  • Who was paid
  • Details of how the amount notified was computed
  • What evidence was collected which demonstrated the payments the worker received were included in an RTI return completed by another third party.

Any evidence to support a claim for having a reasonable excuse for any omitted data or late submission of a return.