Weighty employment

The taxpayer company sold various weight-loss programmes delivered by specially trained former members of the programme known as leaders.

Between 2001 and 2007 HMRC made determinations under the Income Tax (PAYE) Regulations 2003 SI 2003/2682 reg 80 and Social Security Contributions (Transfer of Functions etc) Act 1999 s 8 claiming the leaders were employees of the company.

The taxpayer appealed saying its leaders were independent contractors. The First-tier Tribunal found for the Revenue applying the three-stage approach laid down in Ready Mixed Concrete (SE) Ltd v Minister of Pensions and National Insurance [1968] 1 ALL ER 433.

The tribunal found there was sufficient mutuality of obligation between the taxpayer and the leaders and  the company exerted enough control for the leaders to be...