Tax Cases

H operated through his one man company (the taxpayer) which provided his services to end users. Some engagements were direct contracts between the taxpayer and the end user but those with ABB were not since an agency company NES which provided technical recruitment services was interposed between the taxpayer and the end user.

The Revenue considered that the IR35 legislation applied to the payments received by the taxpayer in respect of work carried out by H from ABB via NES. Thus the liability should be paid by the taxpayer rather than H.

The Special Commissioner dismissed the taxpayer's appeal so the taxpayer appealed to the High Court.

The taxpayer argued that IR35 could not apply because of a contractual provision between the taxpayer and NES (as opposed to between the taxpayer and ABB or NES and ABB)...