Doctor is self-employed

The taxpayer was a cardiac surgeon employed by the NHS but also having his own private practice. When performing private operations he usually asked Dr B to assist him. Dr B was a registrar employed by the same NHS trust as the taxpayer and worked closely with him there.

The patient or his insurance company usually received three bills for a private operation: one from the taxpayer one from the anaesthetist and one from the hospital.

The taxpayer paid Dr B a fixed fee for each operation once he had received his fee from the insurance company. If Dr B was unable to assist the taxpayer found a substitute doctor of his own choosing.

The taxpayer and Dr B entered into a ‘self-employed contract for services’ under which Dr B was not entitled to...