Employment status/IR35 - Another Tribunal win for HMRC

06 July 2022      Julia Ascott, Employment Taxes Specialist

Alan Parry, another presenter providing their services through their own personal service company, has lost a First Tier Tribunal to HMRC as judge rules that mutuality of obligation and controls tests were consistent with employment.

Essentially, whilst (in theory) Parry used his experience to commentate on football games without instruction, the reality was that BSkyB controlled the programme.  Summing up, the judge stated “‘In short, in his relationship with BSkyB, Mr Parry was very much part and parcel of the BSkyB live football team and not working independently on his own account,”.

Importantly for most specialists in this area, the position of mutuality of obligation was discussed in more detail that previous decisions (see P32 onwards and 106 onwards) and makes for essential reading on what might be included in a hypothetical contract.

Read a summary of the case on Accountancy Daily or, not for the faint of heart, the full case decision, the latter of which provides a breakdown of how courts will now determine employment status, being:

  1. Establish the contractual position
  2. Define the terms of any hypothetical contract
  3. Consider whether the hypothetical contract would have been one of employment

Read more

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