Payments made under a contract for services

The taxpayer was the sole general practitioner in the Martello medical practice working five days a week. In 2012 he was appointed a member of the South Kent Coast CCG Board for which he worked one or two days a week. Payments from this appointment were made to the Martello practice bank account. The taxpayer said the payments made by the board to Martello were to compensate the practice for the locum fees it had to pay to cover while he was at CCG. HMRC said he was an employee of the board so payments from the board were remuneration for his services.

The First-tier Tribunal said that the contract was a contract for services between the taxpayer and CCG. It contained no reference to compensation for the cost of a locum. The tribunal agreed that when the taxpayer took on the CCG work the cost to...