In Leverton Search Ltd v HMRC [2018] TC06786 a company successfully appealed late filing penalties: no employment intermediaries returns were actually due as the company was not a 'specified employment intermediary'.

  • Since 6 April 2015 there has been a quarterly reporting regime under which agencies and Employment intermediaries (specified employment intermediaries “SEI”) must report details of payments made to workers who are treated as self employed and not taxed under PAYE. 
  • Late filing penalties under Schedule 55 FA 2009 apply to late returns.

The legislation requires that more than one individual provides services to a client under a contract between the employment intermediary and one or more clients at some point in the return period.

Upon appeal, the FTT found that as Leverton only ever provided the services of one such individual during the return periods in question, it was not a SEI and no return was due.

Useful guides on this topic:

Agency Workers: employment intermediaries rules (subscribers) 
What is an employment intermediary and what are the rules?

Appeals: grounds for appeal toolkit 
It's vital to understand and correctly state your grounds for appeal

Grounds for appeal: taxpayer reasonable excuse
What is a reasonable excuse and why is it important to consider whether you have one?


Leverton Search Ltd v HMRC [2018] TC06786