New Forest Ribbon
New Forest

20/05/2018

HMRC lose IR35 case

In February we reported the Tax Tribunal decision involving Christa Ackroyd Media Ltd, a company set up by a TV presenter to supply her services to the BBC, where it was held that the IR35 personal service company rules applied to the arrangements. In a recent case involving a night manager on a building site, another tribunal decided that the IR35 rules did not apply.

The facts of the recent case involve a Mr Daniels supplying his services via his company MDCM Ltd. These are entirely different from those in the Christa Adcock case but it indicates that the current rules are very unclear and open to interpretation by the courts.

For the IR35 rules to apply it must be inferred that under the hypothetical contract between “worker” and client that worker would be regarded as an employee if directly engaged. There are numerous factors taken into account, but the most important factor considered by the courts is the extent to which the “worker” is under the control of the client.

For further information on IR35, please contact Alan Rolfe on 023 8046 1200.

Latest Tweets

Discretionary funding is available from local councils for businesses who meet a set list of criteria. There are a number of exclusions, and businesses can find out more via their local council websites http://ow.ly/D3co50BRbld

From the 1 January there will be new rates for customs duties and businesses will need to decide how they account for import VAT when making a customs declaration http://ow.ly/oZjR50BRb7E

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.