Part 11

Pay As You Earn
Chapter 3

PAYE: special types of payer or payee

Mobile UK workforce
691
1
This section applies if it appears to the Commissioners for Her Majesty’s Revenue and Customs that—
a
a person (“the relevant person”) has entered into or is likely to enter into an agreement that employees of another person (“the contractor”) are in any period to work for, but not as employees of, the relevant person,
b
payments of, or on account of, PAYE income of the employees in respect of work done in that period are likely to be made by or on behalf of the contractor, and
c
PAYE regulations would apply on the making of such payments but it is likely that income tax and any relevant debts will not be deducted, or will not be accounted for, in accordance with the regulations.
2
The Commissioners may give a direction that, if—
a
any of the employees of the contractor work in any period for, but not as employees of, the relevant person, and
b
any payment is made by the relevant person in respect of work done by the employees in that period,
income tax and any relevant debts are to be deducted in accordance with the provisions of this section by the relevant person on making the payment.
3
A direction under subsection (2)—
a
must specify the relevant person and the contractor to whom it relates;
b
must be given by notice to the relevant person; and
c
may at any time be withdrawn by notice to the relevant person.
4
The Commissioners must take such steps as are reasonably practicable to ensure that a contractor is supplied with a copy of any notice under subsection (3) which relates to him.
5
If—
a
a direction under subsection (2) has effect, and
b
any employees of the contractor specified in the direction work for, but not as employees of, the relevant person so specified,
income tax and any relevant debts are, subject to and in accordance with PAYE regulations, to be deducted by the relevant person on making any payment in respect of that work as if so much of the payment as is attributable to work done by each employee were a payment of PAYE income of that employee.
Words in s. 691 substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(3)(i); S.I. 2005/1126, art. 2(2)(h)
Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(2); S.I. 2005/1126, art. 2(2)(h)
Words in s. 691(1)(c) inserted (20.7.2011) by The Finance Act 2009 (Consequential Amendments) Order 2011 (S.I. 2011/1583), arts. 1, 2(9)(a)
Pt. 11 power to amend or repeal conferred (21.7.2009) by Finance Act 2009 (c. 10), Sch. 58 para. 10
Words in s. 691(2) substituted (20.7.2011) by The Finance Act 2009 (Consequential Amendments) Order 2011 (S.I. 2011/1583), arts. 1, 2(9)(b)
Words in s. 691(5) substituted (20.7.2011) by The Finance Act 2009 (Consequential Amendments) Order 2011 (S.I. 2011/1583), arts. 1, 2(9)(c)