Administrators' duty pay NIC and PAYE

United Kingdom
27/07/2000
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The Court of Appeal has recently affirmed the decision in Commissioners of Inland Revenue -v- Lawrence & Anor that the Inland Revenue enjoys super priority to be paid PAYE and NIC deducted from employees' wages by administrators in respect of services rendered during an administration. This means that the Inland Revenue must be paid first out of the proceeds of any company's property in the administrators' hands, ahead of administrators' remuneration and expenses, and any secured creditor holding a floating charge.

The report of this case in the information archive has been updated to reflect this recent change.

For further information, please contact Inga West on tel: 020 7367 3478 or e-mail: [email protected] or Janet Brier on tel: 020 7367 2326 or e-mail: [email protected].

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