FTT decision in BBL analysed

Keen IR35 readers will recall we co-wrote ‘Rough tax justice – again’ (Taxation 12 July 2021 page 8) as a follow-up to our first ‘Rough tax justice’ (Taxation 19 December 2019 page 8). In those we focused on the criticality of fact-finding necessary to discharge the burden of proof at a First-tier Tribunal (FTT) appeal hearing.

We revisit this specialist IR35 topic in light of a FTT decision (TC8400) for the broadcaster and writer Adrian Chiles and his media-based company Basic Broadcasting Limited (BBL). Once again evidence was paramount. And with so much of it made available to HMRC before the tribunal hearing we ask why HMRC could not have already drawn the same conclusion as Judge Cannan who allowed the appeal.

Timeline of the case

HMRC began its enquiry into BBL in 2015 eventually issuing determinations relating to the tax years...