Hypothetical contract between the hospital and the doctor

Mr Mantides was a urologist who operated through his personal service company – the taxpayer – providing services to the Royal Berkshire Hospital (RBH) and Medway Maritime Hospital (MMH).

At both hospitals the work consisted of conducting outpatient clinics procedures and minor operations. At RBH he also undertook a small amount of on-call duty.

HMRC raised regulation 80 determinations on the basis the company was liable to PAYE tax and National Insurance. The taxpayer appealed saying the hypothetical contracts would not have been ones of employment.

The First-tier Tribunal found there was almost no direct oversight of his work. He did not report to anyone on a daily basis nor did he assume responsibility for more junior doctors. Further no one checked what he was doing or how he did it. He was not paid for days he could not work and he was not interviewed by the hospitals...