(1)Section 689 of ITEPA 2003 (PAYE: employee of non-UK employer) is amended as follows.
(2)After subsection (1A) insert—
“(1B)Subsection (1C) applies if—
(a)the employee worked for the relevant person during the period under or in consequence of arrangements made between the relevant person and a third person,
(b)the third person did not make the payment of, or on account of, PAYE income of the employee, and
(c)PAYE regulations would apply to the third person if the third person were to make a payment of, or on account of, PAYE income of the employee.
(1C)The third person is to be treated, for the purposes of PAYE regulations, as making a payment of PAYE income of the employee of an amount equal to the amount given by subsection (3).”
(3)In subsection (2), for “The” substitute “If subsection (1C) does not apply, the”.
(4)The amendments made by this section are treated as having come into force on 6 April 2014.