Mutual obligations

THE CASE OF Parade Park Hotel and Paul May v HMRC SpC 599 relating to employment status may  interest practitioners as it involves a hotel and a handyman; on the face of it similar circumstances to that in Demibourne (see 'Settling for more? Taxation 14 September 2006 page 654). The hotel was originally operated in partnership by Mr and Mrs Derrick and Mr Derrick carried out some of the maintenance but when the couple separated in 1999 he moved out. Mrs Derrick subsequently realised that she needed someone to carry out general maintenance work and a Mr May who had previously done some work at the property as a self-employed painter and decorator working for another contractor agreed to do this work.
In the beginning Mr May quoted a price for each job but subsequently Mrs Derrick agreed...