Still life photo of a UK employment tax return. The payslip is a mock up the names and all other information on it is fictional.

The new rules on reporting non PAYE – Don’t panic! We can help.

There is always a slight undercurrent of nervousness when there are new legislative pressures introduced into a working environment. This is understandable because we all have systems and those processes tend to work. New legislation often changes these processes.

 

One such recent change has been the introduction of the new rules for reporting by employment intermediaries such as recruiters. They were introduced this tax year and will need attending to because they can result in some quite hefty fines.

The government have introduced these rules with the intention of offering support to those who comply, and ensuring those who don’t are penalised accordingly. Basically these rules are to reduce the incidences of:

  • Agencies that help create false self employment
  • The wrong payments National Insurance and tax being paid
  • Unfair commercial advantage
  • Supplying UK workers from offshore location

In practice this means that you will now need to supply additional information explaining why the person you are acting as intermediary for is not PAYE along with some additional personal information about the starter. This includes, but may not be limited to, information that you probably already gather and some additional requirements such as;

  • Contractors Name
  • Home Address
  • Postcode
  • National Insurance Number
  • Date of Birth
  • Gender
  • Certificate of Incorporation
  • Start Date

The information required to meet the needs of this legislation must be updated regularly and must be accurate and recorded properly. The period for submission is a 3-month rolling schedule, which can be quite a pressure point for some agencies. Not only does this mean learning new legislation and procedures but they will need to be put in place and reviewed regularly to ensure you meet and continue to meet the rules governing limited contractors and umbrella companies.

It is really very important that you comply with these rules as the government are taking this very seriously indeed. They have made this very clear by imposing fines of up to £1000 for non-submission and/or late submission. That’s a pretty clear statement that they mean business.

Fortunately we can help with all this. We have already updated our systems and introduced a new starter form that will help you gather all the information we need to report the data for you. This should make the process easier for you for new starts. You may also need to make sure you gather this information for some or all of your current temporary contract workers. Your payroller should be able to look into this for you and we will be able to advise from there.

As always we are here to help so please do call us to discuss your needs and what we can do to make sure you don’t fall foul of this legislation. But call us soon because the first reporting period is up on July 5th and that is just round the corner.

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