Breaking News: Bitter blow for contractors
British contractors and small businesses have been dealt a bitter blow today as the UK High Court upheld a ruling that favoured the Inland Revenue's controversial IR35 rule.
The case between ex-police officer, Gordon Stutchbury, backed by the Professional Contractors Group, stated that he was a ‘disguised employee’ of EDS and should be subject to PAYE.
Stutchbury contested this, saying his software consultancy Synaptek, was a business in its own right. He had to pay over 50% of his company turnover in tax as a result of the Revenue’s stance.
‘It is clearly disappointing and as anyone who’s ever run a business knows, this sort of confusion adds to the pressures and uncertainties. It’s almost impossible to run a business on that basis,’ said Stutchbury.
Mr Justice Hart dismissed the appeal in court earlier today.