Intermediaries are required to return details of all workers they place with clients where they do not operate PAYE on the workers’ payments in a report which must be sent to HMRC at least once every three months, but intermediates can decide how frequently they upload and send reports.

The guidance states that intermediaries must send a report to HMRC if at any time in a reporting period they supply the services of individuals to a client and have a contract with a client or clients. The rules apply to the provision of the worker’s services in the UK - or if the services are provided overseas, in cases where the person is resident in the UK – and where the intermediary makes one or more payments for the services (including payments to third parties).

In circumstances where the intermediary supplies workers to the intermediary that has the contract with the client, there is no requirement to send a report to HMRC, but it is necessary to provide details of the workers supplied to the intermediary with the contract.

Intermediaries must provide details about workers and their engagements, including both any engagements they are working on and those that ended in the reporting period.

If the intermediary pays the worker in a different period to when they worked, they can include their details on the report about the period they worked in, it is before the deadline for sending the report. Alternatively, they can include the details on the report about the period the payment was in, in which case they leave ‘end date of engagement’ blank.

Intermediaries must provide the worker’s details and payment details for all workers where they do not operate PAYE, including overseas workers; payments where the worker is working in the UK or working temporarily abroad overseas; and construction industry scheme workers where workers are supplied to an end client.

The exceptions to this are where intermediaries supply workers’ services at sea in the oil and gas industry wholly on the UK continental shelf, or do not provide more than one worker’s services to a client or make one or more payments for services for an entire year.

There is no need to include details of workers who are the intermediary’s own employees, or who are not provided with work for a period or not paid during that period. There is also no requirement to include workers who provide their services entirely from their own home or premises not managed by the client, or who are actors, singers, musicians, other entertainers, or a fashion, photographic or artist model.

There is no need to include payment details where they have already been included as part of a payroll submission by any other organisation. In cases where intermediaries have not supplied workers in a specific quarter, they must file a ‘nil report’ by the deadline date.

One-person limited companies, or personal service companies (PSC), that only supply a client with one worker also do not have to send reports to HMRC. If the worker is supplied through an intermediary they will be included in the report the intermediary that has the contract with the end client sends to HMRC.

A PSC is an intermediary if they supply more than one worker, a substitute or other labour including any subcontracted workers. If the PSC operates PAYE on the workers’ payments, they do not have to send reports to HMRC.

If the PSC does not operate PAYE on the workers’ payments, they will have to send reports. If the PSC is supplied through an intermediary, then the worker’s details (usually the director), the company name and registration, and the amount of the payment will need to be supplied and included in the report of the intermediary that has the contract with the end client for submission to HMRC.

The guidance outlines how to access forms allowing intermediaries to upload a report, upload a nil report or advise they are no longer an intermediary using a reporting template. It also gives details of the quarterly reporting deadlines, plus the dates by which any errors must be notified.

If a report is late there is an automatic penalty based on the number of offences in a 12 month period. The amounts are £250 for a first offence; £500 for a second offence; and £1,000 for a third and later offences. Where there is a continued failure to send reports, or where reports are frequently sent in late, HMRC has the option to charge a penalty of up to £600 every day that reports are late.

The updated employment intermediaries reporting requirements guidance is here.