IR35 test case lost at high court

Posted on 5 September 2008

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Dragonfly Consulting has lost its high court appeal against an unpaid £99,000 tax bill, according to reports.

In a decision which affects contractors working in the UK, the high court ruled that Dragonfly director and shareholder John Bessell was working within the scope of IR35 during his contract with The Automobile Association.

Mr Bessell claimed he should have been exempt from the HMRC tax bill as he was not at any point an employee of the association.

The Professional Contractors Group, which had been supporting the applicant in his appeal, expressed disappointment at the decision.

Managing director John Brazier stated that the organisation would be looking at the judgment "in very close detail to work out its full implications".

The Dragonfly appeal has been seen as a test case for existing IR35 tax defenses, which are apparently now in need of review.

 

Category: Tax & Legislation News

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