Limited Company Contractor wins IR35 Case

A self-employed IT contractor has won a legal case with HMRC over IR35. This is the latest in a line of cases over the legislation this year, such as the high profile Tilson vs Alstom case. The contractor, Elaine Richardson, was working through her own limited company ECR Consulting for Vertex Data Science.

Over this 5 and half year battle with HMRC Ms Richardson was facing a tax bill of over £50,000; but through her legal representatives, Accountax Consulting, it was successfully argued that she was not an employee and that she was genuinely self-employed, operating through her limited company.

The Tribunal found that "it is clear to us that ECR is a genuine business and therefore not a target of the IR35 legislation". Matt Boddington, of Accountax Consulting, spoke about the case saying;

"What is particularly pleasing about this judgment is that the Tribunal had their commercial heads on and understood that contracting through a single person limited company is a prudent and sensible method of providing freelance services, and not about disguising employment."

This is another positive step for contractors affected by the legislation, and comes during a week in which the Exchequer Secretary to the Treasury, David Gauke, committed to improving IR35.

Courtesy of ICS. ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.

For more information on IR35 or related matter contact inspired recruitment on 0161 488 2888.