In March, HM Revenue and Customs announced that from 1st April 2015, recruitment agencies would be required to provide a return every 3 months on workers paid outside of PAYE. This is similar to the requirement for RTI submissions for PAYE workers introduced last year. At TVision, we have been involved in the recruitment industry for well over a decade. Our first implementation of the Microsoft Dynamics NAV based Agency Time solution for back office and pay/bill was carried out in 2002, and since then the solution has been implemented in companies UK-wide and international.
For more of an insight into what this legislation will mean, and how companies can ensure they are compliant, we asked TVision’s Agency Time Product Manager and Founding Director Pippa Odell MCIPPdip to talk us through the changes.
What is the new legislation that has been introduced?
From 1st April HMRC requires any Agency that has workers placed with clients, who are not paid through PAYE, to provide a quarterly return on that worker. This relates to information about workers paid through means other than PAYE. The first return will be due to be submitted at the beginning of August and will provide HMRC with data not previously collected.
Who will it affect?
Any agency that has a contract with a client to provide more than one worker’s services to that client and where the agency makes one or more payments to the worker for these services.
This legislation does not apply where the workers supply their services in the oil and gas industry at sea in UK waters. However, it does apply where the worker is working in the UK or resident in the UK if the services are provided overseas.
What will this mean for these agencies?
Affected agencies will now need to provide a return every 3 months for workers not currently paid through PAYE. This does not affect direct employees of agencies.
What are TVision doing to Agency Time to ensure customers are compliant?
We have designed a new report which meets the HMRC specifications. This report contains all the information necessary for customers to make the required returns. The update will add several new fields for information which will need to be completed for each Limited Company. The beauty of Microsoft Dynamics NAV and Agency Time is that it enables us to quickly respond to changes like this, adding and testing the required functionality. We do this at no additional cost for our customers who are on a current support plan, and we were able to roll out the update within weeks of first being made aware of the change in legislation.
What should you be asking your software provider to ensure you are compliant?
Agencies should be checking that their software provider is aware of the new legislation and that they have or are working on an update to the software to ensure compliance. Agencies themselves should be reviewing their own on-boarding process to ensure they have captured all the data that is required and that the data feeds from their Front Office system provides the necessary data for the return to be made. Adequate time should be scheduled for testing the updated reports and ensuring you can upload to HMRC before the August deadline.
If your system is failing to keep pace with new legislation, please contact us to find out how Agency Time for Microsoft Dynamics NAV could be a better fit for your future.
