![UT (Tax & Chancery) UT-2024-000044 - [2025] UKUT 00094 (TCC)](https://backend.juristeca.com/files/emisores/logo_ICfrj4g.png){kind=logo}
UT (Tax & Chancery) UT-2024-000044 - [2025] UKUT 00094 (TCC)
Fecha: 23-Ene-2025
Heading
UT (Tax & Chancery) Case Number: UT-2024-000044
Hearing venue: The Rolls Building
London EC4A 1NL
Judgment date: 17 March 2025
INCOME TAX – NATIONAL INSURANCE CONTRIBUTIONS – Intermediaries legislation, IR35 - whether FTT erred in finding that under the hypothetical contracts, Mr Thompson would be regarded for income tax and national insurance purposes as an employee of Sky UK Limited: see s. 49(1)(c)(i) ITEPA 2003 and Regulation 6 of the (Intermediaries) Regulations 2000- appeal dismissed
Before
JUDGE RUPERT JONES
JUDGE PHYLLIS RAMSHAW
Between
PD & MJ LIMITED
Appellant
and
THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS
Respondents
Representation:
For the Appellant: Michael Firth KC instructed by Roy Baldwin Tax
For the Respondents: Mr Christoper Stone KC and Ms Georgina Hirsch, instructed by the General Counsel and Solicitor for His Majesty’s Revenue and Customs
DECISION
- Heading
- INTRODUCTION
- THE LAW
- THE FTT DECISION AND THE EVIDENCE
- The background leading up to Mr Thompson’s work for Sky before 2013
- The contracts with the Appellant company and their operation from 2013
- THE GROUNDS OF APPEAL
- A(1) Erroneous approach to and interpretation of “on an ad hoc as and when required basis”
- The FTT Decision
- The Appellant’s submissions
- Discussion and Analysis
- A(2) Erroneous approach to interpreting “all directions and requests…will be complied with”
- The FTT Decision
- The Appellant’s submissions
- Discussion and Analysis
- A(3) Erroneous construction of the provision relating to travel and destination
- The FTT’s Decision
- The Appellant’s submissions
- Discussion and Analysis
- B(1) Wrong approach to establishing hypothetical contract
- The FTT’s Decision
- The Appellant’s submissions
- Discussion and analysis
- (B2) Failure to take into account relevant evidence
- Discussion and Analysis
- (B3) Approach to the “informal arrangements” evidence
- Discussion and analysis
- (B4) Reasonableness not a permissible shortcut
- Discussion and analysis
- The FTT’s decision as to whether the necessary framework of control existed was wrong in law The FTT Decision
- The Appellant’s submissions
- Discussion and analysis
- The FTT’s application of the third stage of the employment test was wrong in law
- 68(1) “The control set out above was considerable. In particular Sky’s…right to require Mr Thompson’s performance of the services at location of their choosing is consistent with an employment relatio
- Discussion and analysis
- 68(2) “Mr Thompson’s role as a pundit and a guest giving his own opinion does not tend against the hypothetical contract being an employment contract.”
- Discussion and Analysis
- 68(3) “The manner in which Mr Thompson prepared for and provided these services is not inconsistent with an employment relationship. The same is true of the fact that Mr Thompson would leave as soon a
- Discussion and Analysis
- 68(4) “The fact that Mr Thompson’s opinions and analysis remained his does not affect the employment relationship. Crucially, the hypothetical contract restricted Mr Thompson’s ability to exploit thos
- Discussion and Analysis
- 68(5) “The hypothetical contract provided for termination by Sky but not by Mr Thompson.”
- Discussion and analysis
- 68(6) “Whilst Mr Thompson had his own status and character as a result of his expertise and professional background, he had become associated with Soccer Saturday. This was recognised in the wording o
- Discussion and Analysis
- 68(7) “The fact that the payment was paid as a block fee regardless of air time is neutral. Whether this is a salary or a fee depends upon whether the arrangement was an employment contract or not rat
- Discussion and Analysis
- 68(8) “It is right that Mr Thompson’s work for Sky took up a relatively small amount of his time and that this was one method of capitalising on Mr Thompson’s own status and character. However, this m
- Discussion and Analysis
- 68(9) “The fact that Mr Thompson had the potential to increase his income through the efficient use of his time is neutral. This is saying no more than the fact that Mr Thompson could earn money from
- Discussion and Analysis
- Overall assessment lacking in logic and outside the reasonable range
- Discussion and analysis
- Conclusions