Administrators took on new employees during the period of administration, but when it came to an end, they were unable to pay the PAYE and NIC for the employees.
Held: The statute gave special priority to debts incurred under new contracts. The liability for PAYE fell under that category, and so did liability for NIC, and these took precedence over the expenses of administration. The tax was a statutory translation of the administrator’s debt to the employee of the amounts deducted from his salary. Secondary NI contributions did not carry the same special priority.
Citations:
Times 02-Aug-2000, Gazette 03-Aug-2000
Statutes:
Insolvency Act 1986 19(4) 19(5) 19(6)
Jurisdiction:
England and Wales
Citing:
Appeal from – In Re FJL Realisations Ltd ChD 2-Mar-2000
Administrators took on new employees during the period of administration, but when it came to an end, they were unable to pay the PAYE and NIC for the employees.
Held: The statute gave special priority to debts incurred under new contracts. . .
Cited by:
Appealed to – In Re FJL Realisations Ltd ChD 2-Mar-2000
Administrators took on new employees during the period of administration, but when it came to an end, they were unable to pay the PAYE and NIC for the employees.
Held: The statute gave special priority to debts incurred under new contracts. . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 10 May 2022; Ref: scu.81888
