IT consultant wins latest IR35 battle
08 November 2019
IT consultant, Richard Alcock, has successfully defeated HMRC in the latest battle over IR35.
- Mr Alcock had worked for employers previously, providing his services as an employee before becoming self-employed.
- HMRC argued that his history with clients would suggest an implied expectation to continue working with this client, ultimately giving the impression of an employed individual.
- Tribunal Judge Rupert Jones dismissed HMRC’s claims and stated that the contracts between the client and Mr Alcock did not lead to an expectation of continued work unless agreed by Mr Alcock himself.
- The tribunal opened the fact that the programme with one of Mr Alcock’s clients was stopped and his contract was terminated early in January 2013, resulting in Mr Alcock not being paid for roughly 10 days’ work.
- When the question of substitution was raised, Mr Alcock was able to demonstrate how he had once arranged for a sub-contractor, who unfortunately wasn’t able to be used due to receiving an offer elsewhere.
- Mr Alcock’s position with IR35 was supported by numerous CEST tool assessments which all stated him to be outside the scope of IR35.
Aspire Comment
This is not the first time that we have seen HMRC challenge its own CEST assessments when indicating an ‘outside IR35’ position. This is extremely disconcerting after HMRC have stated they would always stand by the outcome of CEST assessments.
It is vital that contractors seek advice to ensure that the written contract accurately reflects their employment status and position in IR35. Contractors must ensure that they are ready for the changes that April 2020 will bring to the IR35 legislation. If you would benefit from IR35 training or a review of existing contracts, get in touch with an advisor at Aspire today on 0121 445 6178.
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