Winter is coming, and so is another HMRC deadline.
The government introduced the Onshore Employment Intermediaries legislation in April 2014 to stop the use of false self-employment models where workers and employers may be avoiding paying tax and where the employer also avoids their other employment responsibilities.
For the period 6th July to 5th October, the HMRC Intermediary Reporting Deadline is the 5th of November 2016.
As November 5th falls on a Saturday, the Cloud9 team would advise that all reports are submitted by Friday 4th November to avoid penalties being issued. The amount of the penalty is based on the number of offences in a 12 month period.
The amounts are:
- £250 – first offence
- £500 – second offence
- £1,000 – third and later offences
You may also receive penalties for incorrect reports being submitted and this will be reviewed on a case-by-case basis.
Please see table below highlighting the deadline date:
|Reporting period||Deadline date|
|6 April to 5 July||5 August|
|6 July to 5 October||5 November|
|6 October to 5 January||5 February|
|6 January to 5 April||5 May|
By using Cloud9 Umbrella as your approved umbrella provider, all contractors and freelancers working via us will be subject to full PAYE deductions. We are able to provide all the required details for the contractors with us to help you complete the Intermediary Report. This support allows you to concentrate on dealing with your candidates, whilst we manage all the back office administration for you. We operate within HMRC’s guidelines so you can be assured that you are fully covered for a compliant and hassle-free supply chain.
For PSC contractors, there will be no obligation for a PSC to report on workers payments. However, the recruiting agency will need to report how much money was paid to PSC. Although if a PSC supplies more than one worker or subcontracted workers, they could be acting as an intermediary and may be required to submit reports for each period. Our team of accountants at K&B Accountancy Group will personally advise these particular contractors on this matter and there should be no impact to the recruitment agency.
Should your agency wish to find out more about including Cloud9 Umbrella as an approved supplier or request details for Intermediary Reporting for your temporary workers, then please get in touch with us now on 0207 078 0212 or email [email protected]