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Where Taxpayers and Advisers Meet

Third party PAYE

greygravitas
Posts:1
Joined:Wed Nov 26, 2025 6:30 pm
Third party PAYE

Postby greygravitas » Wed Nov 26, 2025 6:38 pm

Good evening

Is a mechanism in place whereby a third party (Insurance company) can pay an individuals PAYE and NI directly to HMRC. Under the following circumstances. The insurer is paying out following an employment tribunal, the claimants award (Unfair dismissal) exceeds £30,000, the Respondent is in Administration. The insurer has confirmed the claim is valid but has been claiming there is no mechanism in place to do this? They have been claiming this for 4 weeks.

darthblingbling
Posts:786
Joined:Wed Aug 02, 2017 9:09 pm

Re: Third party PAYE

Postby darthblingbling » Sat Nov 29, 2025 7:45 pm

Not 100% sure on this, but assuming the payout is PAYE income, there are two parties here who I'd say are liable for operating PAYE, one the insurance company as actual payer who'd id imagine would have some system in place for this. The other, the administrator of the employer in which the payout I'd imagine is on the behalf of. Again I'd imagine they'd have the facilities to operate this.

Would be up to them to figure it out.


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