Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Settling for more?

14 September 2006 / Blaise Marin-curtoud , Ian Reid
Issue: 4083 / Categories: Comment & Analysis , Employees , Income Tax
BLAISE MARIN-CURTOUD and IAN REID look at the implications of the Special Commissioner's decision in Demibourne Ltd.

THE LIMITED CIRCUMSTANCES in which an employer can legitimately recover PAYE and National Insurance from an employee and the way in which tax paid by an individual is to be treated for the purposes of a PAYE settlement with the employer were reviewed by the Special Commissioner John Clark in Demibourne Ltd [2005] SpC 486.

This article summarises the case and analyses why practitioners are still uncertain how to apply the principles of this case and deal with practical situations where PAYE has not been properly accounted.


Demibourne Ltd employed Mr Bone until his retirement in April 1993 to carry out general maintenance duties at an hotel which it owned and operated. Following his retirement Mr Bone continued to work in the same capacity but the company treated him as being self employed. Between April 1993 and April 2002 while Mr Bone worked at...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon