Part 11

Pay As You Earn
Chapter 3

PAYE: special types of payer or payee

Workers’ providing services through intermediaries etc: cases where taxes already paid
688AB
1
PAYE regulations may make the following provision.
2
Provision for an amount to be treated as having been recovered from the payee, and for that amount not to be recoverable from the payer (“the deemed employer”), where—
a
the deemed employer would otherwise be liable to pay an amount under PAYE regulations in consequence of being treated under section 61N(3) as having made a deemed direct payment to a worker (other than by virtue of section 61WA), and
b
an amount of income tax or corporation tax has already been paid, or assessed, in respect of income referable to that payment.
3
Provision for the amount referred to in the opening words of
subsection (2)
to be the best estimate which can reasonably be made by an officer of Revenue and Customs (whether generally or specifically) of the amount referred to in
subsection (2)
(b)
.
4
Provision preventing a person specified in PAYE regulations from—
a
making a claim for the repayment of, or relief in respect of, an amount referred to in
subsection (2)
(b)
, or
b
deducting, or setting off, the amount referred to in that subsection from, or against, any tax liability of the person,
in a case where an estimate of that amount is treated as having been recovered from the payee as a result of provision made by virtue of this section.
5
In this section, “
payee
” and “
payer
” have the same meaning as in section 684 (see subsection (7C) of that section).
S. 688AB inserted (with effect in accordance with s. 17(2) of the amending Act) by Finance Act 2024 (c. 3), s. 17(1)
Pt. 11 power to amend or repeal conferred (21.7.2009) by Finance Act 2009 (c. 10), Sch. 58 para. 10