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Intermediary Reporting Requirements - APSCo clarifies situation on umbrella company workers

“We have noticed a number of articles in the press suggesting that intermediaries are required to report payment information on umbrella workers – this is incorrect,” said Samantha Hurley, Head of External Relations at APSCo.

The HMRC reporting system requires intermediaries to give the reason why PAYE has not been applied – there are a number of options and the intermediary needs to pick the first one that applies from the list which comprises:

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

“We very quickly realised that the final two categories on the list would never be ticked as the worker would, certainly in the professional sector, always come under one of the first four categories,” added Hurley. “We discussed this with HMRC at length and they confirmed to us that umbrella workers would come under the category of limited company.  However, this has been interpreted incorrectly by some to mean that payment details must now also be reported for umbrella workers.  APSCo can categorically confirm that this is not the case and we have had confirmation from HMRC 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. There has been a lot of confusion and incorrect information circulating regarding this issue and we hope that this clarifies the situation.”



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