Labour broker remuneration is what a client pays a labour broker - a business that supplies its workers to clients for a fee. How it is taxed depends on whether the broker is exempt from PAYE withholding.
What it means
By default the law treats payments to a labour broker as remuneration, so the client must deduct PAYE before paying the broker. If the broker holds a valid IRP30 exemption certificate, it is paid gross and accounts for its own tax. The default exists to stop tax being avoided by routing labour through an intermediary.
Where it fits in
Where withholding applies, the client's payroll treats the broker like an employee for PAYE purposes on the fee. The IRP30 status determines whether that withholding happens, and the amounts are reported under the appropriate source code.
Key rules
- The fee paid to a labour broker for supplying workers.
- Subject to PAYE withholding by the client by default.
- A valid IRP30 exemption lets the broker be paid gross.
- An expired or absent IRP30 puts the withholding duty on the client.
