TaxAdministrationIR35 tax ruling threatens UK’s justice system

IR35 tax ruling threatens UK’s justice system

The ruling on the Dragonfly Consulting appeal removes freelance rights of UK’s professional contractors

The government’s desperate attempts to generate additional tax revenues are
undermining the impartiality of the UK’s justice system,’ warns Dave Chaplin,
ContractorCalculator
chief executive officer.

Commenting on the failure of PCG member Jon Bessell, the owner of Dragonfly
Consultancy Ltd, to overturn a tax demand for £99,000, Chaplin told
Director of Finance the High Court ruling in favour of HM Revenue
& Customs (HMRC) was another nail in the coffin for flexible working in the
UK.

‘According to this ruling, HMRC now has arbitrary powers to dictate who is a
contractor and who is an employee, regardless of the client’s or professional
freelancer’s wishes,’ Chaplin said.

‘This ruling basically means HMRC and the Treasury will be able to raise
additional tax revenues where they see fit, resulting in increased fears by any
contractor that they could be targeted for an investigation and be forced to pay
back taxes, National Insurance Contributions and, adding insult to injury,
penalties.’

Further reading:

Shock IR35 decision on Dragonfly leaves freelancers
reeling

Read
the Director of Finance story

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