Contentious tax: quarterly review

Five cases on the application of the intermediaries legislation (IR35) have been brought before the FTT since the beginning of 2018 requiring the tribunal to determine whether an employment relationship arises on a ‘hypothetical contract’ between the individual and the end user of their services. These highlight the difficulties businesses are likely to face from April 2020 when they will be required to determine the IR35 status of contractors who use personal service companies. There has recently been an increase in the use of jeopardy amendments by HMRC in circumstances where it has no reason to believe that ‘there is a risk of tax being lost’ which is contrary to the purpose of TMA 1970 s 9C and HMRC’s own published guidance. Additionally the number of judicial review challenges against decisions of HMRC appears to be on the increase which is perhaps not surprising given...