TaxCorporate TaxBreaking News: Bitter blow for contractors

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.

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