This is a series with Jovan Pavlicevic (commercial director at forest accountants) we are running to help understand what April 6 has in store for recruiters. You can catch number five: LLP Salaried Partner Rules here, number four: Onshore intermediaries; number three: Offshort intermediaries and this week we’ll continue the countdown:
#2 Reporting
For this instalment we’re looking at the onshore/offshore regulations in more detail to find out what the announcements mean for the recruitment sector. HMRC announced fairly onerous agency reporting requirements as part of the new regulations…
Only agencies are targeted in the new reporting measures. Any agency making gross payments to candidates (where candidates are self employed / CIS for example) will have to report these details to HMRC quarterly. Basically if they don’t come through to HMRC on RTI, someone has to prove why.
Recruiters have a slight reprieve though, as HMRC didn’t manage to come up with a plan to make this a reality. Announced in the budget was a 12 month delay in this requirement. IN the mean time, we expect sole tradership to evaporate as a payment model for agency workers. Check back in 12 months and see if we were right, but from our discussions with HMRC and professional advisers we understand their intentions well.
We’ll be back with the final one shortly.
