Construction Industry Scheme ? are you an intermediary?

03 July 2015

An employment intermediary is:

  • a business
  • that supplies a worker for their client
  • who pays the intermediary for this service

If you do supply workers you may need to send HMRC a report every three months. You will need to do this if you

  • have a direct contract with a client/ business
  • provide more than one worker’s services to that client
  • do not directly operate PAYE for these workers

This applies even if you withhold tax under CIS. If you supply labourers to a client and don’t operate PAYE you need to send HMRC the new return. Paying labourers under the CIS scheme doesn’t exempt you from this legislation.

Not every employment intermediary has to send HMRC a report. It is only the intermediary who has the direct contract with the business client who should send HMRC the details on the form.

The return can be completed using HMRC new online service which you can sign up to use the GOV.UK website. If you haven’t already, you will need to register to use HMRC online services first. Penalties may become due where a report is late, incomplete or incorrect.

You have until 5 August 2015 to send your report to HMRC for the first reporting period which is 6 April to 5 July 2015. More information is available at GOV.UK reporting requirements for intermediaries.