Richard Curtis considers two recent tax tribunal decisions concerning the application of the IR35 legislation.
In March, the tax tribunals published decisions in the appeals of two well-known celebrities against potential income tax and Class 1 National Insurance contributions (NICs) liabilities under the intermediaries legislation (commonly known as IR35) in ITEPA 2003, Pt 2, Ch 8 and the Social Security (Intermediaries) Regulations 2000. These provisions seek to combat ‘disguised employment’ by treating payments to the intermediary as employment income.
As a reminder, the relevant parts of ITEPA 2003, s 49 state that the rules apply where:
‘(a) an individual (‘the worker’) personally performs, or is under an obligation personally to perform, services for another person (‘the client’);
‘(b) the services are provided not under a contract directly
