New reporting rules for agencies

Posted by:admin on Mar - 27 - 2015 - Filed under: Contractors -

Currently agencies are required, on a quarterly basis, to provide details to HM Revenue & Customs about themselves and any workers they have been involved in the supply of to end-clients, where the workers have been treated as self- employed for income tax and NI purposes and paid outside of PAYE.

According to HMRC’s revised reporting requirements, agencies (as ‘intermediaries’) will, in the same quarterly record on workers they provide to the end-user, also report the details of those who operate via an external PAYE umbrella company. The net payments to workers won’t have to be disclosed to HMRC by the agency (as that information is provided by the umbrella company via their RTI submissions) but the agency will have to report the amount paid gross to the umbrella company, including expenses and VAT. This means that HMRC will have access to both gross and net payments which will enable them to determine whether or not PAYE has been correctly applied; it will also provide a comprehensive record of which recruitment agencies are working with which umbrella companies.

Be the first one to comment


Reasons To Choose Us


Over 20 years of trusted expert advice

  • Keep it simple - pay for the accountancy services you really need – including set-up, bookkeeping, filing accounts, tax returns and secretarial services.
  • Gain the best advice - we will manage the process for you and make sure you save as much tax as possible.

Making it easy and affordable

  • Save your money – don’t pay over the top for an accountant.
  • What other accountants may consider to be complex, we make routine by using cutting edge technology.
  • We are Central London-based accountants offering convenience without high prices.

Don’t pay too much tax

  • Before working with us, many of our clients had previously been paying more tax than they needed to.
  • If your accountant isn’t up to date on the latest legislation, you too may well be missing out on new tax saving opportunities - don’t take that risk.

Is your accountant interested in your business? We are!

  • We do a complete and proactive job, so you won’t be missing out on tax saving opportunities.
  • We speak your language and we don’t sit back; we monitor, we recommend and we’re never too busy to meet up.


Abbingdon Knight large rose logo