IR35 case won by taxpayer

A recent IR35 case has been won by the taxpayer where £60k of tax was at stake going back 5 years.

The Taxman raised the usual arguments re substitution, control, financial risk etc. However, in finding for the taxpayer, the Commissioners concluded the following:

- a written substitution clause could not be discounted merely because it had not been used in practice;
- isolation and independence were not the same thing regarding integration into the end client’s organisation;
- being part of a team does not necessarily mean they fall fould of IR35.

So, another defeat for the Taxman - how long will it be before they scrap this legislation and replace it with something more workable?