- Personal service was required (there was no right to substitution)
- The BBC exercised significant control over the work performed by Ms Ackroyd
- There were obligations on both parties (mutuality of obligation) to carry out work and make regular, monthly payments for that work.
Why rolling out IR35 into the private sector could be catastrophic for the economy The Treasury’s hints that IR35 rules could be extended to the private sector are more than unsettling, writes Julia Kermode, chief executive of The Freelancer & Contractor Services Association. __________________________________________________________________________________ Ms Ackroyd claimed that the company model was insisted upon by the BBC, and that her accountant has assured her the model was tax compliant. Regardless, the company remains liable for the tax. Commenting on the case, Andy Chamberlain, IPSE?s deputy director policy, said:??This case is significant for several reasons: it?s the first IR35 ruling for seven years, it has resulted in an extremely large tax bill for an individual, and it shows that the original IR35 legislation, deeply flawed though it is, can be made to work when HMRC actually enforce it. ?The current drive to push all the liability onto the client from the outset is like using a sledgehammer to crack a nut. Last year?s change to the way IR35 works in the public sector has essentially stopped contracting in the sector altogether, robbing it of vital specialist skills and damaging public services. If the government extends the reforms to the private sector, as it has signalled it wants to, it will damage not only our flexible labour market, but the UK economy as a whole.? IPSE understands that there are several other BBC engagements under investigation, although the details of these cases are yet to be established. Find out the ten IR35 risks all freelancers need to be aware of
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