In Feburary the Tax Tribunal case of Christa Ackroyd Media Ltd vs HMRC was reported. This was a company set up by a TV presenter to supply her services to the BBC. In this case 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 this recent case involve a Mr Daniels supplying his services via his company MDCM Ltd. These are entirely different from those in the Christa Ackroyd case but it indicates that the current rules are very unclear and open to interetation 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.
If you would like to know more about IR35 or have any questions then please do not hesitate to contact us (whether a current client or not) on 01224 748 298 or by email to info@grampianaccounting.co.uk
