In 2014, the government introduced legislation to have more control over the use of ‘false self-employment’ models, where the workers and employers avoid paying the tax that they should be paying, along with employers avoiding their responsibilities as employers. The rules affect self employed contractors, who are employed via intermediaries and who currently pay taxes as a self employed person AND the intermediary businesses themselves.
If you’re supplying more than one worker to an end client, through a personal service company, or provide services as an employer, this applies to you!
You must use the HMRC template and upload your report online to HMRC. This must be done by each reporting deadline. If your reports are submitted late, or if you forget to submit your report there are penalties charged automatically. If you have not supplied workers in a specific quarter, you must file a ‘nil report’ by the deadline date.
Reporting period 1 – 6th April to 5th July
Submission deadline – 5th August
Reporting period 2 – 6th July to 5th October
Submission deadline – 5th November
Reporting period 3 – 6th October to 5th January
Submission deadline – 5th February
Reporting period 4 – 6th January to 5th April
Submission deadline – 5th May
You can access your intermediary report in the Raise platform, by going to Menu > Reports > Intermediaries > select the dates and hit download! Quick and easy!
You must send a report to HMRC if the following conditions all apply at any time in a reporting period. You:
are an agency or intermediary that supplies the services of individuals to a client
have a contract with a client or clients
provide more than one worker’s services to one or more clients because of your contract with those clients
provide the worker’s services in the UK - or if provided overseas, that the person is resident in the UK
make one or more payments for the services (including payments to third parties)
You do not have to include details of workers who:
do not have to pay tax in the UK
are your own employees
you do not find work for in a period or who are not paid during a period
provide their services entirely from their own home or premises not managed by the client - unless they have to because of the services and work they provide to the client
are actors, singers, musicians, other entertainers, or a fashion, photographic or artist model
Although we will always do our utmost to share the most up to date, accurate information with you, some information may have changed, or may differ depending on your circumstances. Please refer to HMRC website for the latest information.