The 2013 Contract
The 2013 Contract
At FTT[42]-[45], the FTT stated as follows:
There is no dispute that the 2013 Contract is in fact a contract of employment and it is clearly intended to be one. It is headed “Employment Agreement” and clause 2.1 confirms that it is a contract of service. The key question in relation to the 2013 Contract is whether it is an overarching contract of employment (covering not only the assignments but also the gaps between assignments) or whether each assignment constitutes a separate employment.
The contract starts when the worker commences their first assignment and continues until it is terminated. It governs all assignments undertaken by the worker in the meantime (clause 2.1) and is stated to operate and be effective between assignments (clause 2.2). Should the worker wish to take up another employment or work for anybody else whilst the contract is in effect, Mainpay must give its prior written consent (clause 2.2).
Clause 3.1 imposes an obligation on Mainpay to obtain suitable assignments for the workers. It also imposes on the worker an obligation to consider any suitable assignment obtained by Mainpay.
In addition to this, Mainpay guarantees to offer the worker a minimum of 336 hours of work a year (clause 5.2) although the contract does not provide for the worker to receive any payment if the guaranteed minimum number of hours is not offered.
- Heading
- Introduction
- summary of relevant facts
- The 2010 Contract
- The 2013 Contract
- Obtaining assignments
- The process for paying subsistence expenses
- The requirement for consent to other employment
- Length and number of assignments
- the ftt’s determination of the issues
- grounds of appeal
- deductibility of subsistence expenses: relevant legislation
- ground 1: the 2013 contract was an overarching contract of employment
- Mainpay’s argument
- Discussion
- ground 2: a single employment contract
- The FTT’s decision
- Relevant legislation
- Mainpay’s arguments
- Discussion
- ground 3: meaning of “permanent workplace”
- The FTT’s decision
- Mainpay’s argument
- Discussion
- ground 4: use of benchmark scale rates
- Relevant legislation
- The FTT’s decision
- Mainpay’s argument
- Discussion
- ground 5: loss of tax brought about carelessly
- What the FTT decided
- Mainpay’s arguments
- HMRC’s pleading of carelessness
- Failure to take reasonable care
- Causation
- Reliance on Mr Hugo
- Conclusions
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