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Contractor wins payout from HMRC


A self-employed contractor who was treated so badly by HM Revenue & Customs that he was forced to close his business has won compensation.

Neil Martin was told by the Court of Appeal that he deserved a payout from HMRC because its bungling of his tax affairs was “beyond an administrative mistake.”

Legal experts are assessing the complex judgement to determine the wider implications for other freelancers running their own independent businesses. Their analysis will follow.

John Brazier, managing director of the PCG, said the poor handling of Mr Martin’s tax affairs reinforces their demand for a duty of care to be placed on tax officials.

He said: “A duty of care should be placed on HMRC so that its aggressive and often inept investigations of innocent taxpayers can no longer cause them material harm

“We are looking at yesterday's judgment to work out how close it takes us to this being the case, and call on the government to finish the job by establishing a full duty of care if necessary.”



Oct 31, 2007

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