View Full Version : IR35 Issues

29th September 2008, 20:06
My accountant sent me this message. Anybody have any idea on this. He says HMRC is planning to put dividend under PAYE.


In a decission that has caused alarm bells to ring right across the consultancy industry and which will be echoed similarly across that of professional tax advisers, the high court has dismissed the appeal in dragonfly consulting v commissioners of HMRC.

This decission will have a profound effect upon the success of hMRC's drive into the Issue of employment versus self employment. The taxpayer in question was doing work via his own company and via an agency company and had in place many of the safeguards that were thought to guarantee is self employed status (such as the right of substitution) and the High Court still ruled that he was an employee.

If this case remains in place as Case Law, then it is difficult to envisage many arrangements successfully passing the self employment test and this area will become a hugely profitable area of enquiry by HMRC (as if it wasnt already). Challenges to almost every scenario involving this issue can be expected goin forward and it is strongly advised that all practitioners study this case and open a dialogue with an client that they think might be at risk.

It is already common knowledge that HMRC are looking to increase the tax take by any means possible and they will not be overlooking the gift horse that this case has become.


29th September 2008, 20:43
Sounds like ballacks to me. There are still successful ways to defend against IR35.


29th September 2008, 20:45
Don't worry about it. Soon nobody will be earning anything to be T'ed.

29th September 2008, 21:16
the high court has dismissed the appeal in dragonfly consulting v commissioners of HMRC.

I assume that's carp. The case was only a few weeks ago, and although there was talk of appeal it wouldn't have got to the High Court yet, and would have been much bigger news if it had.

30th September 2008, 06:59
Does anyone know the latest on the official Tory stance on IR35?