Lack of mutuality of obligation

Paul Hawksbee was a Talksport radio presenter who provided his services through the taxpayer his personal services company. HMRC said the IR35 legislation applied to the services provided by the taxpayer on the basis that the hypothetical contract between Mr Hawksbee and Talksport was equivalent to a contract of employment. 

The issues were what the terms of the hypothetical contract between Mr Hawksbee and Talksport would have been had the services been provided directly. Further would that contract be one for employment or for services?

In a lengthy decision the First-tier Tribunal examined the relevant contracts and concluded there was no mutuality of obligation. Mr Hawksbee was obliged to work at least 222 days a year but Talksport was not obliged to provide work. A ‘full-blooded employment relationship would typically require an employer to provide work to the employee not merely for the employee to be obliged...