Q. A client is employed by a US employer who has no registered office in the UK. Who is responsible for accounting for the tax and class 1 national insurance contributions (NIC) due on the payments of salary made to the individual?

A. In order for PAYE regulation to apply and therefore PAYE registration, an employer must have a presence in the UK. Presence for this purpose is taken from case law to mean a tax presence. Whether there is any actual tax liability arising on the presence is not relevant.