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

Contractor Insurance

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

ContractorCalculator: Contracting news in brief – 17/Apr/2014 ContractorCalculator: Contracting news in brief – 17/Apr/2014

News this week covers: financial sector recovers; PCG calls for greater contractor support; new powers for HMRC; & late-payment code in construction.

Contractor guide to using substitution to stay outside IR35 Contractor guide to using substitution to stay outside IR35

Contractors who are able to make unfettered substitutions that do not require agreement from the client can use substitution to stay outside IR35.

Contractors and trade unions – can they be compatible? Contractors and trade unions – can they be compatible?

Contractors are independent professionals and also self-employed. Trade unions claim to be all about representing workers? Is there a meeting point?

Financial, HR and IT contractors benefit from London financial sector job surge Financial, HR and IT contractors benefit from London financial sector job surge

IT, HR, compliance and risk specialist contractors are benefitting from a surge in job vacancies, against a background of improving City health.


  
  

Twitter

  • Finance is number in the league table of sectors where IT is growing fast http://t.co/G6sTiNftwB via @siaeurope

    Thu, 17 Apr 2014

  • ContractorCalculator is now on Facebook, so if you wish to receive the latest contracting news connect with us today https://t.co/pPMQmQSmAL

    Thu, 17 Apr 2014

  • Institute of Interim Management 2014 IIM survey is open contractors to complete and will run until 10 May 2014 http://t.co/BQtVrRipAQ

    Thu, 17 Apr 2014

  • ContractorCalculator: Contracting news in brief – 17/Apr/2014 http://t.co/JhNa9rsArf

    Thu, 17 Apr 2014

  • Self-employment increases by 146k over the last quarter, shows latest labour market stats from ONS http://t.co/6Hjh6app73

    Wed, 16 Apr 2014

  • Contractor guide to using substitution to stay outside IR35 http://t.co/Cf0lbR4Il9

    Wed, 16 Apr 2014

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook Orange and Gold Accountancy Limited IR35 Test Clever Accounts Accountants Checklist Contractors Handbook
  
  

Contractor solutions

Contractor Accountant

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

InTouch Accounting

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

Clever Accounts

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

Alliance Accountants

Complete Accountancy and Taxation service from £55 per month

Parasol

We can help you make the most of your money

Contractor Angels

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

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

  

The UK's leading contractor site. Independently audited traffic (ABC) – 123,165 monthly unique visitors.