HMRC issued guidance on Supervision, Direction or Control in response to the consultation document, which defines each of the terms (as follows). The document also provides some detailed examples, of where contractors may or may not fall under Supervision, Direction or Control. Further guidance can be found here.
- Supervision is someone overseeing a person doing work, to ensure that person is doing the work they are required to do and it is being done correctly to the required standard. Supervision can also involve helping the person where appropriate to develop their skills and knowledge.
- Direction is someone making a person do his/her work in a certain way by providing them with instructions, guidance, or advice as to how the work must be done. Someone providing direction will often coordinate the how the work is done, as it is being undertaken.
- Control is someone dictating what work a person does and how they go about doing that work. Control also includes someone having the power to move the person from one job to another.
As from 6th April 2014, employment intermediaries and agencies are required to submit a simple quarterly electronic return containing details of any workers not accounted for through RTI. The first quarterly return needed to be submitted on 31 October 2014.
Penalties for incorrect or late returns were not implemented until April 2015, however should the report be late, a penalty will now automatically be charged.
The amount of the penalty is based on the number of offences in a 12-month period.
- £250 – first offence
- £500 – second offence
- £1,000 – third and later offences
If a report is submitted which is incorrect, penalties may also apply. An incomplete report, for example a report where information is missing, will count as an incorrect report. Penalties for incorrect reports will be determined by HMRC on a case-by-case basis.
Where there is a continued failure to send reports, or where reports are frequently sent in late, a penalty of up to £600 applies for every day that the report is late.
For more information, please contact us on 0116 2690992.