Contracting business ECR Consulting wins IR35 case after five-year battle with HMRC

IR35 Test

IT contractor Elaine Richardson has won her IR35 case after battling with HMRC for over five years over its claim for more than £50,000. A tax tribunal has ruled that her contractor limited company, ECR Consulting, “is a genuine business and therefore not the target of the IR35 legislation”.

The tribunal’s focus on Richardson’s status of ‘being in business on her own account’ could signal a shift of thinking by tax tribunals towards recognising that the classic tests of employment and IR35 status – control, substitution and mutuality of obligation – are increasingly irrelevant in today’s knowledge economy, and can no longer reflect modern flexible working patterns.

Richardson’s company was originally facing an IR35 tax bill in excess of £50,000, relating to her company’s contract work for client Vertex Data Science. Fortunately, her tax investigation insurance, provided through her membership of PCG, funded representation by IR35 experts Accountax Consulting.

Accountax Consulting’s Matt Boddington, who represented ECR Consulting at the recent tribunal hearing, successfully argued that Richardson’s relationship with Vertex Data Science lacked the essential characteristics of employment and it was clear that she was in business on her own account, and not subject to IR35.

Boddington says: “What is particularly pleasing about this judgement is that the tribunal had their commercial heads on, and understood that contracting through a single person limited company is a prudent and sensible method of providing freelance services, and not just about disguising employment.”


Alliance Accountants

Published: Friday, May 13, 2011

© 2014 All rights reserved. Reproduction in whole or in part without permission is prohibited. Please see our copyright notice. If you want to use any content you have seen on this site then please request our media pack and ask for details of our Content Licencing Service.

Inni Accounts


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

Using social media to win contracts Using social media to win contracts

Contractors can increase the chances of being found by recruiters & to find contracts by using social media, says Paul Clutton of Hays Senior Finance.

ContractorCalculator: Contracting news in brief – 21/Nov/2014 ContractorCalculator: Contracting news in brief – 21/Nov/2014

News this week covers: New contracting tsar at NFD; skills shortages; Scottish contracts; shale gas; record IT worker numbers; and HMRC’s performance.

National Freelancers Day 2014: contracting tsar hints at plans to benefit contractors National Freelancers Day 2014: contracting tsar hints at plans to benefit contractors

National Freelancers Day 2014 was the “best yet” & featured hints about plans being shaped before the election by new contracting tsar, David Morris.

National Freelancers Day 2014 is being celebrated today - #NFD2014 National Freelancers Day 2014 is being celebrated today - #NFD2014

Contractors get to celebrate contracting as the Association of Independent Professionals and the Self Employed hosts another National Freelancers Day.


  
  

Twitter

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook IR35 Test Clever Accounts IR35 Report - 15 Years Accountants Checklist Alliance Accountants
  
  

Contractor solutions

Parker Cavendish

Complete accountancy packages for contractors

InTouch Accounting

Perfect mix of technology & personal service for only £92 per month.

Contractor Angels

More than just an Umbrella. Retain up to 90% of your earnings.

Contractor Accountant

Free consultation, incorporation and IR35 reviews. Find out more…

Clever Accounts

Complete contractor accounting service. 24/7 online access. £69 pm!

Need an accountant?

Comprehensive service for £59 per month. Call now for a FREE consultation.

Parasol

The UK’s largest employment organisation - 0% risk, 100% compliance

NA Bedouin Group D J Colom Accountants Parker Cavendish Contractor Financials NewsNow
  
Caprica Accountants Parker Cavendish Contractor Insurance Life Insurance

  

The UK's leading contractor site. Independently audited traffic (ABC) – 124,827 monthly unique visitors.