Revenue Note for Guidance

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Revenue Note for Guidance

985F PAYE Mobile workers

Summary

Section 985E enables the Revenue Commissioners to issue a direction that any payment made by a third party to an employer, for the work done for the third party by employees of the employer, is to be paid under deduction of tax if it is likely that the employer will not operate PAYE in respect of emoluments paid to the employees.

Details

(1) The section applies where it appears to the Revenue Commissioners that—

  • a person the “relevant person”) has entered into or is likely to enter into an agreement that employees of another person (the “contractor”) will in any period work for, but not as employees of, the relevant person,
  • payments of emoluments of the employees in respect of work done in that period are likely to be made by or on behalf of the contractor, and
  • PAYE applies to such payments but it is likely that it will not be applied.

(2) Where this section applies, the Revenue Commissioners may give a direction that if—

  • any employees of the contractor work in any period for, but not as employees of, the relevant person, and
  • any payment is made by the relevant person in respect of work done by the employees in that period,

income tax is to be deducted in accordance with this section by the relevant person on making that payment.

(3) A direction—

  • is to specify the relevant person and the contractor to whom it relates,
  • is to be given by notice to the relevant person, and
  • may at any time be withdrawn by notice to the relevant person.

(4) The Revenue Commissioners are to take such steps as are reasonably practicable to ensure that the contractor is supplied with a copy of any notice given which relates to the contractor.

(5) Where a direction has effect and any employees of the contractor specified in the direction work for, but not as employees of, the relevant person so specified, income tax is to be deducted under PAYE by the relevant person on making any payment in respect of that work as if so much of the payment as is attributable to work done by each employee were a payment of emoluments.

Relevant Date: Finance Act 2019