EIM11820 - PAYE: special type of payer or payee: employee of a non-UK employer

Section 689 ITEPA 2003

Where an employee works for someone in the UK but is employed and paid by an employer outside the UK the person in the UK for whom the employee works is treated, for the purposes of the PAYE regulations, as making any payments of or on account of PAYE income.

The UK person is required to operate PAYE on awards of readily convertible assets in the same way as on cash.

From the tax year 2014 to 2015 onwards, where an employee works for an end user under arrangements involving the supply of their services via a third party, the guidance at ESM2039 may apply.