Beware PAYE payments for workers from overseas

UK companies employing workers through overseas agencies need to be aware that they are responsible for their employees’ PAYE contributions.

The Gangmaster Licensing Agency (GLA) - working in conjunction with the Revenue & Customs - has identified a group of overseas agencies which operate without recognised UK branches or agents.

Some companies use overseas agencies not only to recruit labour but also to pay workers’ salaries. In these cases the UK employer, not the overseas agency, is responsible for paying the employees PAYE. Employers who fail to comply face being taken to court, heavy fines or even jail.