IEIM659000 - Multiple intermediaries

On 28 March 2023 this legislation was repealed and replaced by the Mandatory Disclosure Rules legislation. Please refer to the guidance at IEIM700000 – Mandatory Disclosure Rules Legislation. The disclosable arrangements legislation (DAC6) will be withdrawn on 31 March 2024.

Where there are multiple intermediaries involved in an arrangement, each of them has an obligation to provide a report. However, an intermediary can be exempted from this obligation if another intermediary has reported the information in respect of that arrangement.

Because the reporting window is relatively short (30 days – see IEIM651000) it may be difficult for intermediaries to know whether a report has been submitted in respect of a particular arrangement.

For example, two intermediaries, A and B, are advising on a reportable arrangement. They both agree that A will make the report. However, by the time the information has been collated and the report prepared, the 30 day period has almost expired. If A for some reason does not make the report B would not have time to prepare and make its own report before the reporting window expired. B did not have evidence that A had reported, and so does not strictly meet the requirements to be exempted (see IEIM621100). This could lead to B preparing and submitting its own report, just in case A did not submit the report as agreed. This would lead to duplicate report being made, which would be an unnecessary burden on business.

To avoid this, HMRC will accept that an intermediary in B’s position will have a reasonable excuse for not submitting a report within the 30 day deadline, and so no penalty will be due for such a failure. If B does not receive an ARN from A by the end of the 30 day reporting window, then B would have to submit a report, but HMRC would again accept that there was a reasonable excuse for the report being late provided that the report was made without unreasonable delay once it became clear that the report was required.