Commentary on Sections The Income Tax (Offices and Employments) Act 1944 (7&8 Geo. 6. (1943-44) c.12) What is and is not a payment for PAYE
2732.The distinction between what is and is not a payment of Schedule E income matters because:
	a person making a payment of Schedule E income must, subject to the PAYE regulations, deduct tax in accordance with the regulations;
	a person providing income without making a payment does not have to deduct tax (but may still have to comply with requirements in the regulations to report it – for example the report of benefits in kind and expenses on form P11D).
2733.The boundary between what is and is not a payment was used to avoid PAYE (often as part of attempts also to avoid National Insurance Contributions). This led to legislation to treat income as paid – mainly in:
	section 127 of FA 1994 which inserted section 203F to 203L of ICTA. These, broadly speaking, treated as payments any income provided in the form of tradeable assets; and
	section 65 of FA 1998 which amended and extended the 1994 legislation to cover a wider range of things which could readily be converted into money.