Leeds based contracting specialist Nova Contracting is urging agencies to seek early support on new rules, which mean they must supply quarterly reports to HMRC, containing details of all workers where they don’t operate PAYE on their payments.
Nova Contracting director Marcus Green said: “The new rules start on 6 April and the deadline for the first quarterly report to HMRC is 5 August, but we’re working with our agency clients now to help them ensure that compliant processes are in place.
“Hefty penalties apply for late, incomplete or incorrect reports: £250 for a first offence, £500 for a second and £1,000 for third and later offences. HMRC may even impose a penalty for every day you don’t send a report. Failing to comply with the new regulations could prove extremely costly.
“The first time you tackle legislative change is always the most challenging, but we have extensive experience providing compliant solutions for agencies, so our teams are providing all the advice and support they can.
“Logging all the relevant information as soon as possible and testing out data-gathering processes now will prevent a summer panic.”
The new quarterly reporting requirements mean that from 6 April, agencies will need to report workers’ details if they are not included in their own RTI.
They will also need to report payment details, if the business or organisation which ultimately pays the worker is not including all the payments on their RTI.
HMRC has created a report template and online service for uploading and sending the quarterly reports.