Recently the government published new legislation that means intermediaries, such as employment agencies, have to report non-PAYE employees to HMRC quarterly. This new regulation has been introduced due to the huge rise in staff supplied as non-PAYE in an effort to avoid tax and national insurance payments.
There has been an increase in people reporting as self-employed over the recent years and this is seen as businesses cheating their way out of having to pay taxes – but, this has not gone unnoticed by the government; henceforth their new legislation.
It is hoped that HMRC targeting intermediaries and employment agencies, businesses will be clear on the message – tax avoidance is unacceptable no matter what the earning or position of the employee is.
So, what should you do?
Firstly, get educated and increase awareness of these new regulations to other intermediaries and your clients. Many intermediaries remain unaware of HMRC’s requirements, therefore if you know intermediaries – let them know!
It has been reported that a high number of business were using excuses such as ‘paperwork errors’ however this has been noticed as a repeated excuse – this is no longer viable!
You need to report any non-PAYE clients, however the process of doing this is not quick or easy as it takes a high amount of time. HMRC have been made aware of 3,500 employers that have non-PAYE workers on site – your clients could be next, so make sure they are aware.
If you know a client who is guilty, make sure they are aware so that they can show the intermediary that they are aware of the requirement and they are also working towards adhering the requirement.
Why should you?
Well, as an employment intermediary, the primarily responsibility falls upon you to provide sufficient information on the employees payment statuses. If you do not submit correct information then it could cost your reputation as well as future business. Provide HMRC will accurate information and this will prevent any further investigations occurring and it shows HMRC that you are honest and open to tax issues.
If you are unsure or need some advice with your clients, contact us today on 01909 512 120 or firstname.lastname@example.org