Third party liability for PAYE

Produced by Tolley in association with

Employment Tax

Guidance

PAYE is an acronym for pay as you earn. Despite this label, the employee (‘you’ in the title) has little involvement in the PAYE process, other than suffering the income tax and NIC deduction from their wages or salary. In the majority of cases, it is the employer who administers PAYE on their employees’ earnings and is responsible for paying over the tax and NIC (plus any student loan repayments) deducted to HMRC. However, there are some circumstances where this is not the case and tax and / or NIC has to be accounted for by a third party.

Taxed award scheme (TAS)

Where employees receive incentive ‘awards’ from a third party, tax and NIC may be due on the value of the award. If the employer is not directly involved in the provision of the award by the third party, then the third party may opt to enter into a TAS. The agreement is between the third party and HMRC. Where a TAS has been entered into, the third party can choose to account

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Vince Ashall

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector. Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers. Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

Popular Articles

Corporation Tax

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Employment Tax

Fuel-related payments / mileage payments

Fuel-related payments / mileage paymentsIntroductionMost employers will make payments to employees in relation to business travel. Among the most common payments in relation to business travel are fuel and mileage payments. If an employer does not reimburse these amounts, then the employee will be

14 Jul 2020 11:46 | Produced by Tolley in association with Philip Rutherford Read more

��˾��ҹ��