(g) TerritorialityThe impact of PAYE is not limited to United Kingdom employers. Collection of income tax through PAYE can be required of a foreign employer, but only if that employer has a sufficient 'tax presence' in the United Kingdom (Clark v Oceanic Contractors Incorporated [1983] 2 AC 130, 56 TC 183, [1983] STC 35, HL). A tax presence may be established, for example, by carrying on a trade which is subject to United Kingdom tax legislation. So the reach of PAYE can even extend (as, strikingly, it did in Clark v Oceanic Contractors
The impact of PAYE is not limited to United Kingdom employers. Collection of income tax through PAYE can be required of a foreign employer, but only if that employer has a sufficient 'tax presence' in the United Kingdom (Clark v Oceanic Contractors Incorporated [1983] 2 AC 130, 56 TC 183, [1983] STC 35, HL). A tax presence may be established, for example, by carrying on a trade which is subject to United Kingdom tax legislation. So the reach of PAYE can even extend (as, strikingly, it did in Clark v Oceanic Contractors
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
Free trials are only available to individuals based in the UK
No Credit Card Required
No Downloads Necessary
0330 161 1234