IR35: Judicial Review And After

MOST OF US dislike paying tax but few would take the Government to court on the basis that its fiscal legislation is a breach of both human rights and European law. But the Professional Contractors Group has done exactly that.

The Professional Contractors Group is an umbrella body comprised mainly of information technology contractors opposed to IR35. In Autumn last year it was granted leave to challenge the personal services legislation by way of a judicial review which took place in March 2001. However when judgment was given on 2 April Mr Justice Burton found for the Revenue on all counts.

This article looks at the Professional Contractors Group's arguments and why they failed. A follow-on article to be published in a future issue of Taxation will consider other points of interest raised during the case. These include mutuality of obligation substitution...