Not an ‘other payer’

The claimant provided a financial outsourcing service for clients. The clients were labour providers who provided workers to end users.

The workers entered into contracts with the providers in respect of their labour supply.

The claimant processed the pay for each worker dealing with the tax and National Insurance. On this basis the claimant argued it was entitled to use its PAYE reference number rather than those of the clients. HMRC said that the PAYE should be remitted using the clients’ numbers.

The Administrative Court agreed with HMRC so the claimant appealed. It said that the payments to workers were made out of its own funds. It received the money from the end user used that money to pay the workers and accounted what was left to the labour providers.

Thus under the Income Tax (PAYE) Regulations 2003 SI 2003/2682 the claimant said...