Importance of fact-finding in IR35 cases

Keen IR35 readers will recall we co-wrote ‘Rough tax justice’ (Taxation 19 December 2019 page 8) about a dissection and repair in RALC Consulting Ltd (TC7474) by the fact-finding First-tier Tribunal.

On this specialist topic we return to the RALC case comment on a parallel with the more recent decision of the Upper Tribunal in Northern Light Solutions Ltd v CRC and draw on insights gained at the coal face of our IR35 defence work to provide some comfort for firms entering the new world of the off-payroll legislation.

RALC Consulting – case still in surgery

To refresh our memories RALC provided niche skills and operated its business through several contracts in the information technology industry. HMRC considered RALC was caught by IR35 and it attended the First-tier Tribunal with an army comprising of two barristers lawyers from HMRC Solicitor’s Office and HMRC...