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HMRC publishes updated guidance on PAYE reporting for employment intermediaries

27th July 2016

HMRC have recently issued updated guidance regarding quarterly returns which an agency or intermediary is required to submit providing details of all workers they place with clients where they do not operate PAYE on the payments made to those workers. 

The updated guidance re-states HMRC's position on penalties where the return is submitted late, in which case, the agency or intermediary will automatically be charged a penalty. The amount of the penalty is based on the number of offences in a 12 month period.

£250 - First offence
£500 - Second offence
£1,000 - Third and subsequent offences

The "clock" is re-set once at least 12 months has lapsed since the last time a report was submitted late. Where an incorrect report is submitted, then penalties will be considered on a case-by-case basis.

Where HMRC finds that the agency or intermediary should have submitted a report and have failed to do so, then a penalty may be applied. The real "sting in the tail" is that where there is a continued failure to submit reports, or where reports are frequently sent in late, HMRC may issue a penalty of up to £600 for every day that the reports are late.

For further information please do not hesitate in contacting Nick Bustin, Director of Employment Tax, via email or on 020 7969 5578, or your usual haysmacintyre contact.