Contractors' Questions: Are reporting rules for agencies retrospective?

Contractor’s Question: The agency behind my IT contract has asked me to supply certain personal details to keep them compliant with the reporting requirements for employment intermediaries. But to start the contract, I had to sign up to a different umbrella company to the provider I was with, as my one wasn’t on the agency’s PSL.

I’ve read a ContractorUK article on this topic, but it doesn’t say if the taxman will only be looking forward with the details he receives. If he looks backwards, will my having to use two umbrellas matter?


Expert’s Answer: You might be pleased to know that we understand from HM Revenue & Customs that the legislation which you’re referring to will NOT be applied retrospectively.

So reporting will NOT be required on umbrella companies that were used prior to the introduction of the legislation.

However, HMRC will be receiving detailed information from both umbrella companies and recruitment agencies. It is therefore likely that should HMRC suspect that you (the worker) were involved with a non-compliant scheme, then it would look at umbrella companies used previously.

The expert was Lisa Keeble, co-founder of All Umbrella Companies Are Equal.

Monday 6th Apr 2015
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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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