Onshore Intermediaries Explained

On 6 April 2015, the recruitment landscape shifts once again.

For those of you who provide temporary contractor services, you will be caught by the Onshore Intermediaries Legislation.

Having been introduced around twelve months ago, this legislation is designed to prevent the perceived increase in false self-employment and the supply of workers through offshore locations. The new regulations will help HMRC penalise agencies that do not comply with existing legislation, it is expected to reduce unfair commercial gains, it will help support agencies that do comply and HMRC will increase their ability to collect the right amount of Tax and National Insurance that falls due.

The system of reporting will involve quarterly returns being made to HMRC, with the first quarter end being 5 July 2015. Within these returns you will be responsible for the delivery of information to HMRC regarding all non-PAYE temporary workers. You should report all transactions with self-employed contractors, those with limited companies as well as payments to umbrella companies.