Another HTMRC intermediary reporting question

[ba55meister]

Do digital agencies need to supply HMRC with the information on of contractors working for the agency?

[northernladuk]

Do digital agencies need to supply HMRC with the information on of contractors working for the agency?

Do they meet the criteria as laid out by the legislation?

[TheCyclingProgrammer]

What NLUK says but from what I remember, very likely a YES.

[darrylmg]

What NLUK says but from what I remember, very likely a YES.

Is the OP talking about those websites where you can hire a contractor and the site takes a % ?

[eek]

Is the OP talking about those websites where you can hire a contractor and the site takes a % ?

No, I think he is talking about the digital marketing companies who employ freelancers in various forms.

I doubt these regulations were advertised that well outside of recruitment agents but from memory as tcp says there were no exception written in the rules. If we employ a substitute and don't pay them by paye I'm sure we are supposed to report it

[ba55meister]

The legislation states that every company that (a) has a contract with a client (b) provides more than one worker’s services to a client because of your contract with that client

So for example if a company (a digital agency or a software house) provides IT services to the end client and they hire clients directly or through recruitment agencies they still have to collect the data about contractors they hire and report to HMRC. Is that correct?

[TheCyclingProgrammer]

No, I think he is talking about the digital marketing companies who employ freelancers in various forms.

I doubt these regulations were advertised that well outside of recruitment agents but from memory as tcp says there were no exception written in the rules. If we employ a substitute and don't pay them by paye I'm sure we are supposed to report it

That's exactly it. The rules apply to anyone who acts as an intermediary including us if we sub-contract.

It's certainly not that well advertised outside of agencies I'm sure. I mentioned it to my current client out of mutual concern (I.e. This could be a PITA for both of us) and they weren't aware of it. They never came back to me with their own conclusions but they havent asked me for any of the reporting info so they aren't complying AFAIK.

I imagine outside of recruitment agencies, non compliance will be widespread.

[TheCyclingProgrammer]

The legislation states that every company that (a) has a contract with a client (b) provides more than one worker’s services to a client because of your contract with that client

So for example if a company (a digital agency or a software house) provides IT services to the end client and they hire clients directly or through recruitment agencies they still have to collect the data about contractors they hire and report to HMRC. Is that correct?

IIRC if a client provides sub-contracted workers to one of their own clients then they have to report it unless the sub-contracted worker is supplied through an agency in which case the agency reports it. I don't think the worker has to be reported by more than one party.

There was quite a bit of discussion on here on what actually constitutes as supplying a worker. If a client hires MyCo and I supply a sub-contracted substitute then it's reasonably clear that I would have to report that substitutes details to HMRC. But if I simply sub-contract an element of the work (e.g. some design work for a web project) but the designer only deals with me then it's not clear if that's reportable as I'm not really supplying them as a worker, they are simply supplying their services to MyCo.

[ba55meister]

I mentioned it to my current client out of mutual concern (I.e. This could be a PITA for both of us) and they weren't aware of it. They never came back to me with their own conclusions but they havent asked me for any of the reporting info so they aren't complying AFAIK.
I imagine outside of recruitment agencies, non compliance will be widespread.

I mentioned it to a company I work with occasionally as well and they never heard of this new HMRC initiative. It does indeed look like it's been designed to address bad practices amongst recruitment agencies but the legislation is worded rather confusing in places.

[BolshieBastard]

I mentioned it to a company I work with occasionally as well and they never heard of this new HMRC initiative. It does indeed look like it's been designed to address bad practices amongst recruitment agencies but the legislation is worded rather confusing in places.

Why dont you go to the horse's mouth ie hmrc and ask them?