Albatel v HMRC

In Albatel v HMRC [2019] UKFTT 195 (16 March 2019) the FTT found that the television network ITV did not have sufficient control over the work of a presenter to make her an employee under the hypothetical contract for the purpose of the IR35 provisions (ITEPA 2003 s 49). 

The directors and shareholders of Albatel were Mr Smith and Mrs Smith (professionally known as Lorraine Kelly). Albatel was their personal service company but the appeal only concerned Mrs Smith. Albatel had contracted to provide the services of Ms Kelly to ITV Breakfast in connection with the television programmes ‘Daybreak’ and ‘Lorraine’. The main issue was whether Albatel was an intermediary employer and whether the hypothetical notional contract between Ms Kelly and ITV would have been a contract of service as HMRC contended or a contract for services as Albatel contended under ITEPA 2003 s 49. 

Referring to Hall...