From 5 August 2015, agencies must, on a quarterly basis, report to HMRC details of all workers they place with clients where the worker is not paid on agency payroll. This will include offshore workers, umbrella workers, CIS workers and those working through PSCs.
Agencies will have to select from a drop down menu which sets out why the agency has not deducted PAYE:
- A: Self-employed
- B: Partnership
- C: Limited liability partnership
- D: Limited company including personal service companies
- E: Non-UK engagement
- F: Another party operated PAYE on the worker's payments (umbrella)
The first report due will be in respect of the quarter 6 April to 5 July 2015 so agencies now have very little time to put in place systems to capture the required information. HMRC has issued a template to follow - see HMRC's report template.
Agencies will also have to supply information on the worker (which is similar to RTI):
- address and postcode
- National Insurance number
- date of birth and gender (if no NI number)
- unique taxpayer reference (CIS only)
- start and end date with client
and information in respect of the entity paid by the agency:
- name of company
- company registration number
- unique taxpayer reference
Finally agencies must let HMRC know how much was paid in respect of each worker (including VAT).
Agencies are likely to hold most of this information but may not have NI numbers for the workers. PayStream will support these reporting requirements by making the information available on our Agency Portal.
If you want any further information about the new reporting requirements please email us and we'll be in touch.