UK employers who fulfil criteria of operating PAYE accounts for employees who are deployed at client locations without the involvement of other parties are exempt from the need to submit employment intermediary reports to the HMRC. Whereas, if you happen to be an agency that arranges employment for individuals to work with third parties, without operating a PAYE account, you need to submit reports to HMRC. Here is all that you need to know about these employee intermediary reports.
If you fulfil the following conditions, you are liable to submit the report.
The details of workers whose services you arrange for clients need to be a part of the report, carrying details such as the full name, address and postal code of the individuals, in addition to the National Insurance Number and the date of birth and gender of the individual. The report also needs to show exact details of the period of engagement of the individuals and the payments that have been released. The report submissions are quarterly in nature and have specific dates as deadlines for the relevant quarter. Agencies and intermediaries that are liable to submit just one report, will need to continue submitting nil return reports consequently till the completion of four-nil returns.
Yes. The report needs to list out the reasons for non-operation of a PAYE account for the individuals whose services are used by the end client. While this non-operation could be attributed to any of multiple reasons, the more common reasons include – self-employment and different arrangements of partnership.
When the individuals are not liable to be taxed in the UK, you need not submit a report. Similarly, if the workers happen to be directly employed by you, a report is not necessary. If details of workers have already been included in the PAYE accounts of another entity, you are not liable to submit a report in this regard. Individuals of a particular category – such as those in the performing arts and individuals who work out of their own homes on behalf of clients also need not be included in the intermediary report.
If you need further information about the Employment Intermediaries Co-ordination Unit (EICU), or any of the other specific conditions related to the report, find an accountant.