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 agencyClientClientSection 684
AgencyAgencySection 684
UK intermediary of clientIntermediary of clientSection 684
Overseas intermediary of clientClientSections 688(2) and 687
UK intermediary of agencyIntermediary of agencySection 684
Overseas intermediary of agencyAgencySections 688(1) and 687
UK client through overseas agencyClientClientSection 684
AgencyClientSections 688(1) and 689
UK intermediary of clientIntermediary of clientSection 684
Overseas intermediary of clientClientSections 688(2) and 687
UK intermediary of agencyIntermediary of agencySection 684
Overseas intermediary of agencyClientSections 688(1) and 689
Overseas client through UK agencyClientNo-one 
AgencyAgencySection 684
UK intermediary of clientIntermediary of clientSection 684
Overseas intermediary of clientNo-one 
UK intermediary of agencyIntermediary of agencySection 684
Overseas intermediary of agencyAgencySections 688(1) and 687


However, 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.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)