Please see HMRC page for this report: https://www.gov.uk/government/publications/employment-intermediaries-reporting-requirements
InTime provides the facility to produce a report formatted for the HMRC Employment Intermediary Report. In order to use this report you should ensure you:
- Categorise your contractors correctly. You should contact HMRC if you are uncertain on a workers status. If you require specialised advice please contact the Business Development team who can put you in touch with RSM's Employment Consulting Group.
- Capture the mandatory contractor information
- Mark contractor invoices as paid in a timely manner. If you are using the Payments Module the payment date will automatically be set when generate the payment file. If you are not using the InTime payment module then you will need to manually mark invoices as paid from the relevant invoice search screen.
- Regularly check the validation report to ensure that you have captured the mandatory information.
If you supply contractors to an intermediary then you can mark that InTime Client as an intermediary. The intermediary report can be run for each client who is marked as an intermediary OR you run the report for all standard, i.e. not intermediary, clients. While InTime allows you to produce a report for an Intermediary, it is your responsibility to cover off and data protection issues with both your client and contractors before sending this data to another party.
Contractor Details Changes
The report requires that some additional information is captured for contractors who are not paid directly through PAYE. The additional information is:
- The Engagement Type which is one of
- A - Self Employed Contractor
- B - Partnership
- C - Limited Liability Partnership
- D - Limited Company
- E - Non-UK Engagement
- F - Another party operations PAYE on this contractor's payments
- Z - Out of Scope.
- Either or both of the following
- Date of Birth and Gender
- National Insurance Number
- Unique Taxpayer Reference (UTR)
The engagement type of Z is provided so that you can exclude contractors who you deem should not be reported to the HMRC. Please refer to the HMRC for futher details.
This information is captured for each of your contractors as shown on the screen-shots below
InTime will not enforce entry of these items even though they are mandatory in the report. This limits the amount of information that must be captured up-front.
Clients who are Intermediaries
If you have a client who you wish to treat as an intermediary, you should edit the client and tick the intermediary tickbox as shown below.
Validating and Running the Report
To produce the report to be uploaded to the Government Gateway, navigate to the Employment Intermediary Report section. An example of this page is shown in the image below
It can be seen that the report is run on a quarterly basis. The period drop-down allows you to select the current quarter and four previous quarters.
You can also choose to run the report for a specific intermediary or for all standard, i.e. non intermediary, clients. For the later, choose "Agency's Own Report".
Before downloading the report you must run the validation. In the example above InTime has responded with four validation messages. The first is a warning message. This is showing that there is an invoice which was due for payment in the period but it has not been paid.
The other three validation messages are shown as errors since mandatory information is missing. This would cause a validation error when the file is uploaded to HMRC although you should still be able to submit the file.
The report can be downloaded after the validation has run. You may choose to download the report even if it contains errors. We strongly recommend that you do not submit the report if it contains errors as this may result in you receiving fines from HMRC. Do not re-save your file from Excel after you have downloaded it. Excel may affect the formatting in the CSV if you save and this may introduce formatting errors.
Submitting the Report to the Government Gateway
Once you have generated your report from InTime you will need to upload that file to the Government Gateway. Login using your credentials and navigate to the file upload section of the employment intermediaries section. You should see a page as shown below.
Drag your report into the grey box. The report will now be uploaded and the page will refresh to show the uploaded file as shown below.
Click on the "Check for errors" button. The image below shows a file that has validation problems
We recommend that you correct these warnings and then re-submit your file.
The image below shows that a valid file has been uploaded
You should then follow the instructions and send your file.
Frequently Asked Questions
- Why do I get address validation problems?
The HRMC require two address lines. These don't have to be in street 1 and street 2 in InTime. If street 2 is empty then InTime will use the town or the county.
- How do I get a date to appear in the End Date column of the report?
The End Date column shows the leaving date entered for the worker when they are updated using the 'Make Leaver' option.
'Make Leaver' is one of the options in the drop-down to the right of the Edit button in the Profiles - Workers screen. The role to make a worker a leaver is not a standard role for an administrator and needs to be added to their profile by another adminstrator who already has the role.
- What would happen if a contractor's Engagement Type is changed part way through a period?
The Intermediaries Report will use the current Engagement Type set against a contractor. if a contractor has changed engagement type during a reporting period then you will need to manually update the report to change/remove the values.
Note: if the report is amended in Excel you will need to open it in Notepad or similar and ensure that all dates are in the format dd/mm/yyyy.