Weekly case highlights ― 8 November 2021

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly case highlights ― 8 November 2021
  • Employment tax
  • Little Piece of Paradise Ltd v HMRC
  • VAT
  • Dhalomal Kishore v HMRC
  • Mainpay Ltd v HMRC
  • Harley Scott Commercial Ltd v HMRC

Weekly case highlights ― 8 November 2021

These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.

Employment tax

Little Piece of Paradise Ltd v HMRC

This is the latest in a series of IR35 cases relating to TV presenters, in this case a Sky Sports anchor (C).

It breaks no new ground, with a conventional review of the established tests based on identifying the hypothetical contract between the worker and the client and applying the principles identified in Ready Mixed Concrete to that contract. The result was a comfortable win for HMRC.

It is notable that in 2018, in response to the new off-payroll working rules, Sky informed all its ‘on-air talent’ that they would not be able to engage through a personal service company in future, as they would ‘no longer qualify as self-employed’.

The Tribunal acknowledged that this could be taken as Sky conceding that its contractual relationship with C should have been treated as under a contract of service but HMRC could not rely on this any more than C could rely on the fact that he had been treated as self-employed before the interposition of his PSC.

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