New Reporting Requirements for Recruitment Agencies

UK Recruitment Agencies

From 6 April 2015 reporting requirements for non-RTI workers will come into force. Following consultations last year, which aimed to tackle the use of employment intermediaries facilitating false self-employment of workers in order to avoid employment taxes and offshore employers to employ UK workers who are working for UK based companies, HMRC has introduced new reporting requirements in the hope of levelling the playing field between compliant and non-compliant agencies. During the consultation process many agencies raised the concern of just how much extra information would be required, with many anxious about the extra burden these new reporting methods would have upon their business. Despite the concerns raised HMRC still saw the need for a change in the return requirements. However, they have listened to the sector and have reduced the amount of information that needs to be reported. Going forward agencies will no longer need to report worker title, hours worked, passport number, National Identity Card Number and, where a NINO is provided, the need to report date of birth and gender. They will also only have to tell HMRC about payments to self-employed workers and those who are not included in their PAYE. Furthermore, HMRC have reduced the time frame for submitting nil reports from 3 years to 1. Returns that are incorrect will still face penalties. Although, HMRC hope that only reasonable information is being requested and therefore agencies should not encounter many problems with the new reporting measures. These latest changes are a step in the right direction for recruitment agencies as less information now needs to be reported. However, many in the industry still feel that they are burdened with too many requirements.

Summary of the information required to be submitted by recruitment agencies:

  • intermediary name and address
  • PAYE number and PAYE reference
  • reporting period from and to
  • is this a NIL return – Y/N
  • have you ceased operating – Y/N
  • worker name
  • worker National Insurance Number
  • where no NINO is available: Date of Birth and Gender
  • worker UTR (where self-employed or in partnership)
  • worker address and postcode
  • worker engagement details
  • worker UTR (where self-employed or director)
  • start date and end date of engagement
  • amount paid for the workers services (currency and inclusive of VAT) (only for the self-employed and others they have engaged where PAYE has not been operated)
  • has income tax been deducted from these payments
  • name of party paid by intermediary for workers services and address
  • Companies House registration number of party paid by intermediary for worker’s services (if applicable) **SOURCE: HMRC https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/401533/Intermediaries_response_document_FINAL.pdf