Dragonfly case will have ‘no massive impact’ for contractors
After the initial shock of the news that Jonathan Bessell of Dragonfly Consulting had lost his IR35 appeal in the High Court and now faces a £99,000 tax bill, it would appear that the judgement does not place tens of thousand of contractors at risk of being inside IR35, as originally feared.
Amie Norton of Qdos Consulting, the compliance and insurance organisation commented:
“After detailed analysis of the Dragonfly judgement, we have concluded that there is no massive additional exposure to IR35 risk for contractors. The key lessons from this case are the right to substitution, control and the intentions of the parties. The interpretation of substitution has narrowed, but this can be clarified by contractors with their clients.”
Jenrick CPI’s advice for contractors is to still take urgent action to ensure their contracts and working arrangement with clients are clear, and that any potential sources of doubt over their IR35 status are clarified.
One positive outcome of the case is that the Appeal Judge ruled that HMRC cannot ignore the intentions of the parties, although their intentions still cannot overrule the implications of the hypothetical contract.
For further Information on IR35 Compliance
Jenrick CPI is taking advice and has posted IR35 guidance notes on our website for contractors, with practices and procedures that can be put in place to assist in not falling foul of any fall-out from the case.
For more information please visit the following article on our website: http://www.jenrickcpi.co.uk/dragonfly-case-ir35-compliance
Information provided by www.contractorcalculator.co.uk
Tags: AWD & IR35, dragonfly case, ir35 compliance
