EIM11816 | PAYE: special type of payer or payee: agency workers: who has to operate PAYE: payment in cash
From HM Revenue & Customs · Employment Income Manual
Part 11 Chapter 3 ITEPA 2003
| Individual works for | Paid by | PAYE must be operated by | Legislation (ITEPA 2003) |
|---|---|---|---|
| UK client through UK agency | Client | Client | Section 684 |
| Agency | Agency | Section 684 | |
| UK intermediary of client | Intermediary of client | Section 684 | |
| Overseas intermediary of client | Client | Sections 688(2) and 687 | |
| UK intermediary of agency | Intermediary of agency | Section 684 | |
| Overseas intermediary of agency | Agency | Sections 688(1) and 687 | |
| UK client through overseas agency | Client | Client | Section 684 |
| Agency | Client | Sections 688(1) and 689 | |
| UK intermediary of client | Intermediary of client (see the note below) | Section 684 | |
| Overseas intermediary of client | Client | Sections 688(2) and 687 | |
| UK intermediary of agency | Intermediary of agency | Section 684 | |
| Overseas intermediary of agency | Client | Sections 688(1) and 689 | |
| Overseas client through UK agency | Client | No-one | |
| Agency | Agency | Section 684 | |
| UK intermediary of client | Intermediary of client | Section 684 | |
| Overseas intermediary of client | No-one | ||
| UK intermediary of agency | Intermediary of agency | Section 684 | |
| Overseas intermediary of agency | Agency | Sections 688(1) and 687 |
You should only consider whether the person making a payment of PAYE income is an intermediary if you are satisfied that the agency is not required to operate PAYE. For example, engaging a payroll agent does not remove the PAYE obligation from the agency (see EIM11812).
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)