Taxpayer’s claim that he was not a director rejected

The taxpayer (G) was a trainer. After he had been made redundant he decided to work for himself. He contacted various agencies which told him that he would have to work through a personal service company (PSC) before he could be placed on assignments.

On the advice of one agency he approached Think Accountancy Ltd (TAL) which made all of the arrangements to set up the company and organised all of the payments. G was ‘remunerated’ by a combination of the national minimum wage and dividends. After the arrangements had been in operation for some time G became concerned about press reports concerning TAL and changed advisers. He ultimately applied to have his PSC struck off.

HMRC’s enquiries led it to conclude that TAL was a managed service company provider and that the PSC was a managed service company. PAYE and NIC determinations totalling some...