Income Tax (Earnings and Pensions) Act 2003, Section 687 is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(1)If any payment of, or on account of, PAYE income of an employee is made by an intermediary of the employer, the employer is to be treated, for the purposes of PAYE regulations, as making a payment of the income of an amount equal to the amount given by subsection (3).
(2)Subsection (1) does not apply if the intermediary (whether or not a person to whom PAYE regulations apply) deducts income tax [F1and any relevant debts] from the payment the intermediary makes, and accounts for it, in accordance with PAYE regulations.
(3)The amount referred to is—
(a)if the amount of the payment made by the intermediary is an amount to which the recipient is entitled after deduction of income tax [F2and any relevant debts] , the aggregate of the amount of the payment and the amount of any income tax due [F3and any relevant debts deductible] , and
(b)in any other case, the amount of the payment.
(4)For the purposes of this section a payment of, or on account of, PAYE income of an employee is made by an intermediary of the employer if it is made—
(a)by a person acting on behalf of the employer and at the expense of the employer or a person connected with the employer, or
(b)by trustees holding property for any persons who include or class of persons which includes the employee.
[F4(5)This section does not apply in relation to a payment so far as the sum paid is employment income under Chapter 2 of Part 7A.]
Textual Amendments
F1Words in s. 687(2) inserted (20.7.2011) by The Finance Act 2009 (Consequential Amendments) Order 2011 (S.I. 2011/1583), arts. 1, 2(6)(a)
F2Words in s. 687(3)(a) inserted (20.7.2011) by The Finance Act 2009 (Consequential Amendments) Order 2011 (S.I. 2011/1583), arts. 1, 2(6)(b)(i)
F3Words in s. 687(3)(a) inserted (20.7.2011) by The Finance Act 2009 (Consequential Amendments) Order 2011 (S.I. 2011/1583), arts. 1, 2(6)(b)(ii)
F4S. 687(5) inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 28
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