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HMRC have clarified their position on the new intermediary reporting requirements for umbrella company workers, following enquiries from the Association of Professional Staffing Companies (APSCo).
The taxman’s system requires intermediaries to select from a list the reason why PAYE has not been applied. There are six categories:
A. Self-employed
B. Partnership
C. Limited liability partnership
D. Limited company
E. Non-UK engagement
F. Another party operated PAYE on the worker’s payments
HMRC have clarified their position on the new intermediary reporting requirements for umbrella company workers, following enquiries from the Association of Professional Staffing Companies (APSCo).
The taxman’s system requires intermediaries to select from a list the reason why PAYE has not been applied. There are six categories:
A. Self-employed
B. Partnership
C. Limited liability partnership
D. Limited company
E. Non-UK engagement
F. Another party operated PAYE on the worker’s payments
APSCo’s head of external relations, Samantha Hurley, said, “We realised the final two categories on would never be ticked, because the worker would, certainly in the professional sector, always come under one of the first four.
“We discussed this with HMRC, and they confirmed that umbrella workers would come under the category of limited company. However, this has been interpreted incorrectly by some to mean payment details must be reported for umbrella workers.”
The Revenue assured APSCo that “there is no legal obligation to report the payment, just the worker identity details, the company name, address and registration number, and the start/end dates of the assignment,” Hurley added.
