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Two IR35 defeats cost contractors £130,000
by Susie Hughes at 15:33 18/01/08 (News on IR35)
A spate of recent IR35 cases has seen two victories for the Revenue and two for the contractors.
Special Commissioner Charles Hellier, who ruled on both cases which were wins for HMRC found that contractors, Dragonfly Consulting Ltd and MKM Computing Ltd, had become part of the team and integrated into their client companies. Do not mix with permies.
Increasingly its seems that HMRC and the Commissioners are looking beyond the terms of the contract - even back-to-back contracts - and examining the working practises of the arrangement as seen through the eyes of the client. Do not do what the clients ask of you.
In some cases, where the contract has included ' the right of substitution', the client has refuted this would have been the case in practical terms. Some of these cases date back several years.
Two IR35 defeats cost contractors £130,000
by Susie Hughes at 15:33 18/01/08 (News on IR35)
A spate of recent IR35 cases has seen two victories for the Revenue and two for the contractors.
Special Commissioner Charles Hellier, who ruled on both cases which were wins for HMRC found that contractors, Dragonfly Consulting Ltd and MKM Computing Ltd, had become part of the team and integrated into their client companies. Do not mix with permies.
Increasingly its seems that HMRC and the Commissioners are looking beyond the terms of the contract - even back-to-back contracts - and examining the working practises of the arrangement as seen through the eyes of the client. Do not do what the clients ask of you.
In some cases, where the contract has included ' the right of substitution', the client has refuted this would have been the case in practical terms. Some of these cases date back several years.
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