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Michael Paul Accountants

Employment Intermediaries

2nd November 2015

From April 2015 all businesses classified as a specified employment intermediary have been required to file a new quarterly return to HMRC.  If you think this won’t apply to you then read on as HMRC’s definition of a specified employment intermediary is very wide covering a huge amount of businesses who would probably never expect to be caught.

The legislation states that a business must make a return if

  1. It supplies more than one individual to an end user under a contract between the business and end user


  1. It makes one or more payments in respect of the work done by the worker and either it had to make a PAYE RTI return for the worker but didn’t or it didn’t make a PAYE RTI return because the worker was not it’s employee or deemed to be an employee by the agency legislation.

This basically means if a business arranges for an individual or another business to carry out work for one of their client’s where they invoice the client for the work done and then pay the individual or business without the payment being subject to PAYE then this is caught under the new legislation and a report should be filed.  Even if a businesses uses subcontractors and deducts CIS from them they are still required to file the new intermediaries report as well!

More information on the report including how to submit it can be found here





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