The right path

The appellant company provided the services of its director Mr Winfield a software developer to clients including GlaxoSmithKline plc (GSK) in 2001/02 and 2002/03.

HMRC were of the view that the IR35 rules applied and issued a determination of income tax and Class 1 National Insurance contributions.

The company appealed and the tribunal decided that its function was to determine what would have been the nature of a hypothetical contract had Mr Winfield worked directly for GSK rather than via his company which had been sourced for GSK by various agencies and then whether that contract would have been one of employment or a contract for services.

The first point made by the tribunal following the judgment of Park J in Usetech Ltd v Young 76 TC 811 was that the minor...