Parasol welcomes HMRC guidance on onshore reporting
The document, published on Thursday, confirmed that recruiters will only need to report identity details – and not payment information – for contractors employed by an umbrella company when submitting quarterly returns to the taxman.
That’s because payment details will have already been included in the umbrella firm’s PAYE Real Time Information (RTI) submission.
Parasol managing director Derek Kelly said: “This is a common-sense decision from HMRC, which will ensure considerable amounts of unnecessary duplication are avoided.
“At a time of heightened scrutiny of our sector by policymakers and the mainstream media, this serves as a timely reminder of the importance of compliant, legitimate umbrella employers.
“By reducing the administrative burden on recruitment firms and effectively acting as a tax and data-collection service for HMRC, contractor employment providers play a vital role in the flexible workforce supply chain. Indeed, we expect agency demand for our services to increase post-April.
“The guidance suggests that agencies will also need to report on Limited company contractors, such as those served by our sister firm ClearSky Contractor Accounting.
“We will be communicating with ClearSky clients, investing in systems and developing processes that make the sharing of relevant information as painless as possible for them and our agency partners.”
Parasol and ClearSky Contractor Accounting are part of the Optionis Group.