EIM11802 - PAYE: special type of payer or payee: background
Part 11 Chapter 3 ITEPA 2003
Most payments of PAYE income are made by the contractual employer or pension provider to an employee or pensioner in the UK. Under the PAYE regulations, the payer will be responsible for deducting and accounting for tax and, unless the payment is a special type of income (see EIM11803), the process should be straightforward. However, occasionally a payment of PAYE income may be made in circumstances where the obligation to deduct and account for tax is not clear from the PAYE regulations.
Part 11 Chapter 3 ITEPA 2003 specifies who is responsible for accounting for tax in the following circumstances: