The Professional Contractors Group (PCG) has today welcomed the news that the Special Commissioners of Income Tax have ruled in favour of PCG member Mike Ansell, whose IR35 case was heard in April this year. PCG supported the case, handled by Accountax Consulting.
44-year-old Mike Ansell, from St Albans in Hertfordshire, is an IT specialist working in the defence sector and has undertaken several projects for BAE Systems, two of which were under appeal. His reaction upon hearing about the judgment was one of relief and joy. “It has taken nearly two years to have this matter resolved,” he said, “and I am over the moon. The people at Accountax have been very professional and dedicated in following it through to the end, and I am very grateful to PCG for supporting my case. I hope that this ruling will help thousands of other contractors in a similar situation.”
PCG chairman Dr Simon Juden was delighted with the result, and said, “This comprehensive and detailed judgment helps provide clarification regarding the tax status of freelance consultants, and we are pleased to see yet another ruling that is consistent with PCG’s historical advice and our understanding of employment status. IR35 remains enormously complex and confusing for contractors, and one of PCG’s prime functions remains to help members pass through its labyrinthine provisions.”
Tax expert Dave Smith of Accountax commented, “This case is very important in that it highlights the significance of differences between freelancers and permanent employees. It also acknowledges that a contractor may be outside IR35 even though there are very few factors pointing to his being in business on his own account. “
Full details of the judgment are likely to be published within the next few weeks.