New PAYE regs correct Demibourne outcome

The employment status case of Demibourne Ltd v Revenue and Customs Commissioners highlighted a number of potentially expensive tax issues for employers and employees alike which can arise when a worker formerly regarded as self-employed is later reclassified as an employee.

Demibourne confirmed that HM Revenue & Customs (HMRC) do not have the discretion to choose whether to collect tax from the employer or the employee.

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