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| CURRENT SECTION :: IR35 / IR591 | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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Asking experts for advice could have saved one IT contractor from the Intermediaries legislation (IR35) and its resulting penalty of £27,000 in employment taxes. Issuing this verdict yesterday, the PCG said MKM Computing Ltd , might have avoided HMRC’s demand if its director had sought “business advice and professional support”. The trade body, which strives to help contractors reduce the risk of IR35, meanwhile plans to fund an appeal for another IT contractor who also lost to the Special Commissioners. The owner of Dragonfly Consulting Ltd , like MKM, would have been an employee had he been directly engaged by his end client, Charles Hellier wrote in his SC’s ruling last month. To be successful, legal experts say any IR35 appeal from Dragonfly would need to identify a point of law upon which the Special Commissioner erred or misdirected himself. Alternatively, it would have to prove that the decision in favour of the Revenue is “perverse, in that it is one that no other commissioner could have reached based on the facts.” However the last two IR35 cases won at the Special Commissioners and then appealed by the taxpayers at the High Court went in favour of the Revenue. Jan 22, 2008 Email this article Printer friendly page Previous Page
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