The Income Tax (Pay As You Earn) Regulations 2003

Application to payers and payees

Application to agencies and agency workers

10.—(1) For the purposes of these Regulations—

(a)agencies are treated as employers; and

(b)agency workers are treated as employees.

(2) For the purposes of the regulations listed in paragraph (3), an agency ceases to employ an agency worker at the earlier of—

(a)the end of the relationship between the agency and agency worker, or

(b)the end of a period of 3 months during which the agency makes no relevant payments to the agency worker,

and not each time the agency worker stops providing services to a client of the agency.

(3) The regulations are—

(4) The following regulations do not apply to agencies or agency workers in their capacity as such—

Application to pension payers and pensioners

11.—(1) For the purposes of these Regulations—

(a)pension payers are treated as employers;

(b)pensioners are treated as employees; and

(c)a pensioner’s “employment” with a pension payer starts when the pension starts and ends when the pension ends.

(2) The following regulations do not apply to pension payers or pensioners in their capacity as such—

Application to other payers and payees

12.—(1) For the purposes of these Regulations—

(a)other payers are treated as employers;

(b)other payees are treated as employees; and

(c)an other payee’s “employment” with an other payer starts when relevant payments start and ends when relevant payments end.

(2) The following regulations do not apply to other payers or other payees in their capacity as such—

(3) Paragraph (2) is subject to regulation 91(9) (termination awards: former employers and employees).

(4) The following regulation does not apply to other payees in their capacity as such—