Whose services?

Income earned by company or individual

The taxpayer was a GP. For two years from 2006 he worked full-time as a self-employed locum with H an agency.

In 2008 on the advice of his accountant he set up a company with the intention of working through that. However he issued invoices in his own name and the company had no bank account.

HMRC said the company had never traded and generated no taxable profits. The evidence showed that the taxpayer as an individual was entitled to the income received from H for his locum services and therefore he should be pay tax and class four National Insurance on this rather than corporation tax. It issued assessments accordingly.

The taxpayer appealed.

The First-tier Tribunal said a taxpayer was entitled to carry on his business through ‘whatever medium’ he wished be it as a company...