Contract of services

Employment status of haulage drivers

The taxpayer provided haulage services and engaged drivers from a pool. There were no written contracts between the taxpayer and the drivers. They were paid a fixed amount for each shift with no holiday pay could refuse jobs but were not guaranteed work undertook compulsory induction training and had to meet a specified level of competency had a limited right of substitution generally provided their own legally required personal protective equipment and used the taxpayer’s lorries. Drivers could work for other businesses if they wished.

HMRC considered the drivers were employees and issued determinations on the taxpayer for PAYE tax and National Insurance. The taxpayer appealed saying the drivers were in business on their own account.

The First-tier Tribunal decided to take the approach of the tribunal in I Mitchell (TC1041) by reviewing the facts against specific badges of trade and then...