Workers are employees

The appellant undertook work on a sub-contract basis for main contractors and used his own workers in doing that work.

HMRC considered these workers were employees and raised assessments under the Income Tax (Employments) Regulations 1993 reg 49 and the Social Security Contributions (Transfer of Functions etc) Act 1999. The appellant appealed to the General Commissioners.

The commissioners concluded that the workers were self employed because the terms of engagement were oral only there was no formal contract protecting the worker and the worker was paid on a work done basis.
HMRC appealed.

The High Court ([2007] STC 1684) remitted the case to the General Commissioners for rehearing saying that they should have considered whether the taxpayer had sufficient control over the workers to make them employees.

The case came before the first-tier tribunal.

The appellant did not attend but two workers gave...