PAYE Manual

PAYE81511 - PAYE operation: international employments: employer with no UK presence

Section 689 ITEPA 2003

As set out in PAYE81610, to be within the scope of PAYE, an employer must have a UK presence. Where an employer does not have a UK presence, and does not choose to voluntarily operate PAYE on payments of PAYE income which they make, section 689 treats a UK entity who is not the employer of an employee, but for whom the employee works, as making payments of PAYE income on which that entity is required to operate PAYE.

This requirement applies automatically if the PAYE regulations do not apply to both the actual employer and, if different, the person who pays the employee (unless the payer operates PAYE regardless).