Off-payroll working (IR35)

Devereux’s members are uniquely placed to advise on the application of IR35 (or the Off Payroll Working rules as they are known), and conduct litigation before the Tribunals.

The legislation has undergone significant changes in recent years, with reforms in the public sector in 2017 and expansion of those reforms to medium and large private sector clients in 2021. This was the biggest change to contracting labour in 20 years and placed new burdens and risks on the end client. For the first time, clients have had to determine whether IR35 applies to their contracting arrangements.

Members of Devereux have been at the forefront of the developments in the case law during that period, which have re-shaped how the IR35 test is applied. That expertise is sought after as HMRC increase their enforcement activity with medium and large clients under the new rules. Akash Nawbatt KC was instructed in the Court of Appeal in Kickabout Productions and in the High Court appeal in Larkstar Data. Christopher Stone KC was instructed in the two leading Court of Appeal cases regarding IR35: Atholl House Productions and Kickabout Productions. He has been instructed in most other IR35 appeals in the last decade: Christa Ackroyd Media (FTT and UT); Red, White and Green (FTT and UT); RALC (FTT and UT); PD&MJ (UT); SL Barnes (UT); Northern Lights (UT); Bryan Robson Ltd (FTT); Gary Lineker Media (FTT); Paya and Ors (FTT); Jelly Vine (FTT); Canal Street Productions (FTT). Marika Lemos KC was instructed by the appellants in Paya and Ors (FTT) and Big Bad Wolff Productions (UT); leading Georgia Hicks in Paya and assisted by Colm Kelly in both matters. Rebecca Murray appeared for the appellant in Atholl House Productions.

Georgina Hirsch was instructed in PD&MJ (FTT and UT); and in Bryan Robson Ltd (FTT). Georgia Hicks, was instructed by the taxpayer in the FTT, UT and Court of Appeal in Kickabout Productions; in the UT in Christa Ackroyd Media; and in Paya & Ors and Jensal Software in the FTT.

Bayo Randle was instructed in SL Barnes (FTT and UT) and Alan Parry Productions (FTT).

Marianne Tutin was instructed in RALC (UT); Basic Broadcasting Ltd (FTT and UT); and in the Court of Appeal in Atholl House Productions and Kickabout.

In addition to this litigation experience, many members of Devereux’s Employment and Tax teams have advised public authorities; end-clients; intermediaries and agencies on the application of IR35.

Devereux’s expertise in IR35 is matched by their unrivalled experience in litigating and advising on other aspects of employment taxes, for example:

• Direct employment status investigations and appeals
• Agency working regulations
• Managed Service Companies
• The taxation of termination payments
• The taxation of benefits in kind
• Allegations of fraud in labour supply chains