A PSP (personal service provider) exists if:
- service is provided by a company or a trust - NOT an individual
- the service is provided via a person who is connected to the co/cc.
- the psp does not have at least 3 full-time employees who are not shareholders, members, beneficiaries or connected persons.

The requirement/possibility of a co/cc having PAYE deducted etc has been around for a number of years (cannot remember exact date..old age) and was specifically legislated to curb the abuse of taxpayers by resigning from their job, forming a co/cc, get re-employed by the same employer as "independent contractor" and claiming a myriad of fictitious expenses, avoiding monthly PAYE as employee, etc.

Yes, you must insist on getting an IRP5 certificate if a supplier insisted on deducting PAYE and you will get credit for this on final assessment. You may also deduct any PAYE deductions when calculating a provisional tax payment.