The Court of Appeal’s guidance on IR35 employment status

"The Court of Appeal’s recent decisions in the IR35 cases of Atholl House and Kickabout Productions give authoritative guidance on the application of the Ready Mixed Concrete and business on own account tests. Although HMRC won both cases, the decisions contain much of benefit for taxpayers in the fight for a sensible approach to the employment status test. In respect of the business on own account test, the court dismissed HMRC’s efforts to relegate the business on own account test as inferior to the RMC test and confirmed that relevant factors should not be  limited to the four corners of the contract. In respect of the RMC test, the Court likewise rejected HMRC’s arguments that (a) there should be a prima facie conclusion of employment if  mutuality of obligation and control are found to exist; (b) these tests are binary; and (c) mutuality of obligation and control should not be taken into account at the evaluative stage."

This article was originally published in Tax Journal. 

Georgia Hicks is a leading junior in matters relating to employment status and IR35. She has a strong practice in tax litigation and advisory work, instructed by both HMRC and the taxpayer. Georgia is ranked as a leading tax and employment junior by Chambers & Partners and Legal 500. 

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