On 16 September 2008, HMRC published guidance on the circumstances in which it will exercise its discretion to transfer a PAYE liability from employer to employee under the "Demibourne regulations". The effect of a transfer is that HMRC will not seek to recover PAYE income tax from an employer if the worker has paid tax on the relevant sum under self-assessment: a transfer does not impose any additional tax liability on the employee.

Given that HMRC states in its guidance that it will always exercise its discretion to make a direction other than in exceptional circumstances, businesses entering into arrangements with a self-employed worker should ensure that the worker is obliged to self-assess income tax on sums paid under the arrangements.