Commentary on Sections Glossary Part 2: Employment income: charge to tax Section 13: Person liable for tax
62.This section identifies the person liable for tax on the various kinds of employment income, and the various circumstances in which that tax charge arises. Subsections (1) to (3) are new. See Note 5 in Annex 2.
63.Although the idea of identifying the person liable for tax on employment income is new, it does not change the current position where the employer has the primary liability to deduct tax under the PAYE provisions. Under ICTA employees are liable for the tax, but are entitled to pay only the net amount after taking off payments on account and deductions at source (see section 59B of TMA 1970).
64.Subsections (4) and (5) set out who is liable for tax on earnings received or remitted to the United Kingdom after the employee’s death. They derive from section 202A(3) of ICTA.