Employment intermediaries: reporting requirements

12 February 2015

New guidance on reports intermediaries may have to send to HMRC for agency workers where they did not operate PAYE has been published.

An intermediary is any person who makes arrangements for an individual to work for a third party or be paid for work done for a third party. An employment intermediary is also commonly referred to as an agency.

From 6 April 2015, intermediaries must return details of all workers they place with clients where they don’t operate Pay As You Earn (PAYE) on the workers’ payments. The return will be a report (or reports) that must be sent to HM Revenue and Customs (HMRC) once every 3 months.

You don’t have to send HMRC reports if you are a UK employer and you:

  • supply workers to provide their services to end clients and nobody else is involved
  • operate PAYE when you pay those workers

HMRC has consulted with intermediary representatives and has listened and responded to many of the concerns raised around the information to be included in the report. Wherever possible the final reporting requirements have been changed to reduce the regulatory burden.