No contractual obligation

Talentcore supplied workers called consultants to cosmetic companies for counter and promotional work at duty-free shops in airports.

HMRC issued assessments to tax under PAYE and National Insurance for the years 1998/99 to 2006/07 on the basis the consultants were agency workers providing personal services and therefore subject to PAYE under ITEPA 2003 s 44 to s 47.

The taxpayer logged an appeal which was allowed by the First-tier Tribunal.

The Revenue appealed.

The Upper Tribunal (Tax and Chancery Chamber) agreed with the First-tier Tribunal that the consultants were not contractually obliged to provide personal services.

However HMRC’s alternative argument was when the consultant was working he was providing a personal service: even if the contract did not oblige...