Taxes Management Act 1970 section 16A

Agency workers

Section 16A deals with the information reporting obligations imposed on agencies that supply workers, requiring them to provide HMRC with details about the workers they place and the payments made to them.

• Agencies that supply temporary or contract workers must provide HMRC with returns containing details of the workers they have placed and any payments made to or in respect of those workers.
• The provision applies to agencies acting in the business of supplying labour, covering situations where workers are engaged through an intermediary rather than being directly employed by the end client.
• HMRC may require returns to be submitted in a specified form and by a specified date, ensuring they have visibility of employment arrangements that might otherwise fall outside normal employer reporting.
• Following amendments made by Finance Act 2011, the data-gathering powers in Schedule 23 to that Act now supplement and interact with this section, broadening HMRC's ability to obtain information from agencies about workers and payments.