IEIM740100 | Multiple Intermediaries

Where there are multiple intermediaries involved in an arrangement, each of them has an obligation to provide a report. However, an intermediary may be exempted from this obligation if another intermediary has reported the information to HMRC in respect of that arrangement, or if the intermediary has reported the information to a partner jurisdiction.

Because the reporting window is relatively short (30 days – see IEIM740020) it may be difficult for intermediaries to know whether a report has been submitted in respect of a particular arrangement.

For example, two intermediaries, A and B, are advising on a reportable arrangement. They both agree that A will make the report. However, by the time the information has been collated and the report prepared, the 30 day period has almost expired. If A for some reason does not make the report B would not have time to prepare and make its own report before the reporting window expired. B did not have evidence that A had reported, and so does not strictly meet the requirements to be exempted (see IEIM721120). This could lead to B preparing and submitting its own report, just in case A did not submit the report as agreed. This would lead to duplicate reporting which would be an unnecessary burden on business.

To avoid this, HMRC will accept that an intermediary in B’s position will have a reasonable excuse for not submitting a report within the 30 day deadline, and so no penalty will be due for such a failure. If B does not receive notification from A that a report has been made by the end of the 30 day reporting window, then B would have to submit a report, but HMRC would again accept that there was a reasonable excuse for the report being late provided that the report was made without unreasonable delay once it became clear that the report was required.