Those recruitment agencies who place temporary staff have been subject to strict HMRC reporting requirements since 5th April.

These new requirements mean that the recruiter will have to report details of workers that have not been treated as ‘employees’ because PAYE is operated elsewhere. This could be because they are dealt with through an umbrella company, or because they are not under the agency’s control.

It will also cover workers that a recruitment agency has helped supply temporarily to clients within the UK.

Agencies are required to provide detailed information about individuals, as well as explain why they have not been treated as an employee.

The first report from recruiters is due by 5th August 2015. Penalties for non-compliance will be significant, with recruiters having to pay up to £1,000 per quarter for three or more offences in a year.

The regulations have already come under fire for placing too much pressure on agencies, as reporting has not previously been required by recruiters, and so professional advice may be needed.

Enabling Change offer recruitment training and recruitment development courses to aid your recruiting business in providing the best experience for your clients and candidates. To find out more about our courses, contact 01264 360 234 today.