New Forest

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

Don't forget to get your best festive one-liners in by Friday 21st December at 1pm to be in for a chance to win https://t.co/IK9Joavxzo #hohohohwb

What did Father Christmas say to Mother Christmas when he looked out out the window?...
Looks like Reindeer!
Thank you to everyone who had submitted their jokes so far. To enter visit https://t.co/IK9Joavxzo #hwbhohoho

Let’s Talk

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