UK recruiters risk falling foul of changes to the onshore intermediaries legislation, resulting in a compliance headache and significant financial penalties.
Under the new rules, which came into force on Monday, recruiters will have to record the details of every contractor they place who is not paid via the agency’s own PAYE system. Required information includes their name, address, National Insurance number and the individual’s unique taxpayer reference.
Although non-compliance could result in a hefty fine, many agencies are still confused about what they should do and when they have to do it by.
In the run up to the changes, several staffing firms have contacted us under the impression that the first reporting deadline was April 6th 2015, rather than August 5th. Others have thought that they do not need to take any action at all until August, a misconception that could land them in hot water with HMRC.
Derek Kelly, our managing director, told Recruiter magazine: “This confusion suggests that the government could have done a better job of communicating the detail of the changes to the recruitment industry, which is already drowning in red tape and administration.
“While the first return isn’t due until August, it’s vital that agencies begin recording worker data now. Late, incomplete or incorrect reports could result in a financial penalty, so non-compliance will come at a cost.”
He added that the new obligations were a “significant administrative headache” for agencies – particularly smaller firms that potentially lack the systems and knowledge of their larger counterparts.
How can Parasol help?
We can supply staffing firms with all of the worker data they need to satisfy their obligations and stay on the straight and narrow. Information is shared safely and securely, and in a format that is compatible with HMRC’s template.
We have also produced this handy infographic, detailing all you need to know about the changes.
For more information about what Parasol can do for you, please email email@example.com.