Chapter 36: Additional Reporting Requirements for Employment Intermediaries

These flashcards cover the key concepts and details from Chapter 36 regarding the additional reporting requirements for employment intermediaries, including their obligations, deadlines, and penalties.

What is the primary reporting obligation of employment intermediaries according to Chapter 36?

Employment intermediaries must make quarterly returns to HMRC regarding the workers they use to supply services to clients unless they operate PAYE for those workers.

Under what circumstances does the reporting obligation not apply to an intermediary?

The reporting obligation does not apply if PAYE has been operated on payments to workers, if the services are provided wholly outside the UK, or when only one worker is supplied.

What type of companies or individuals could be affected by the reporting requirements?

Companies, partnerships, and individuals who use self-employed contractors to provide services to clients are potentially affected.

What information must be included in the quarterly report to HMRC?

The report must include all payments made during the tax quarter, details about each worker, and a reason if PAYE was not operated.

How long must the intermediary retain records used for fulfilling the reporting obligation?

Records must be retained for at least three years.

What are the deadlines for submitting the quarterly reports to HMRC?

Reports are due one month after the end of each tax quarter, which ends on 5 July, 5 October, 5 January, and 5 April.

What are the potential penalties for failing to comply with reporting requirements?

Penalties can reach a maximum of £3,000 per return and £600 per day for continued failure to comply with the reporting obligation.

What must an intermediary do if there has been a nil return for four consecutive quarters?

The intermediary must notify HMRC that it is no longer acting as an employment intermediary.

Are there any exceptions to the reporting requirement if the worker is a subcontractor within the Construction Industry Scheme (CIS)?

No, the reporting requirement still applies even if payments to subcontractors have been included in monthly CIS returns.

What is the appeal process for penalties imposed under the reporting requirements?

Appeals must be made in writing, responses are provided within 30 days, and penalties are suspended pending the outcome.