EIM11816 - PAYE: special type of payer or payee: agency workers: who has to operate PAYE: payment in cash

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)