Court of Appeal rules in contractors' favour
A TV presenter won a high-profile Upper Tribunal case regarding her employment status under the IR35 rules. HMRC appealed against this, but the Court of Appeal has just rejected its argument. What happened?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
HMRC’s argument was that the Upper Tribunal had interpreted a key piece of case law incorrectly. The case in question sets out the factors that should be considered, such as mutuality of obligation, personal service and others. HMRC argued that whether someone is “in business on their own account” (i.e. other factors) should be given little weight, and even argued that considering this would be an onerous compliance burden for HMRC. In a decision published today, the Court of Appeal unanimously rejected this argument, stating that circumstances known to both parties at the date of the contract, e.g. the fact that the person providing the work has an established career as a freelance worker, should be taken into account. This is a huge win for all contractors, particularly those providing personal services.
The decision on whether, overall, there would have existed an employment relationship in this case was remitted back to the Upper Tribunal.





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