IR35 - Dragonfly

IR35 - Dragonfly

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I was on holiday last week when the high court judgement in the Dragonfly Consulting case was handed down.

This may be very significant for contractors, especially worrying with the clarification that the Service Companies question on tax returns is to identify potential IR35 targets for HMRC.

Am I looking in the wrong place? There seems to be nothing in the AWeb news sections nor anyone discussing it on Any Questions.

In discussing IR35 with one contractor client he has raised the possibility of closing his company down periodically & restarting a new one. Not because he thinks his assignments are caught by IR35, (so not a money laundering type problem), but to put a limit on the contracts HMRC may investigate for IR35 status.
Malcolm Veall

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By Malcolm Veall
10th Sep 2008 16:49

HMRC did the briefing
I may be wrong but I think they were called by HMRC & briefed by them.

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By AnonymousUser
10th Sep 2008 15:28

Malcolm
The line managers were clearly badly briefed in this case.

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By User deleted
10th Sep 2008 13:06

You jumped the gun
Nichola Ross Martin has an article today, with detailed analysis coming Monday!

https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=188312&d=1025&dateformat=%25o-%25B

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By Malcolm Veall
10th Sep 2008 12:39

Trend to go beyond contract
Phil,

All that you say is correct, but I know that the PCG backed this case because they wanted to pull back the trend that Mr Hellier, (the SC), was stressing of looking beyond the contract. In particular Mr Bessell had a "real arrangements letter" confirming that he could send a substitute but Mr Hellier seemed determined to find that less relevant than oral evidence from line managers.

In a more general sense it feels like a bit of a slippery slope when contracts can be ignored & line managers' views given precedence.

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