Locum Focus: HMRC lose another IR35 case

For more information about any of the issues raised in this article contact Benjamin Hammond , EditorHM Revenue and Customs (HMRC) have suffered another defeat in a case concerning IR35, the legislation that in effect makes PAYE rules apply when a limited company is artificially imposed in an employer/employee relationship. 

The case involved, as most have, an IT contractor who supplied services through a limited company.

HMRC argued that there was sufficient ‘mutuality of obligation’ to make IT contractor Elaine Richardson an employee of Vertex Data Science. The Tax Tribunal disagreed, however, and rejected HMRC’s contentions.

This decision it the latest in a series of reverses for HMRC in applying IR35 and will make it less likely that they will pursue similar claims based in the future.