HM Revenue & Customs v Larkstar Data Ltd

HM Revenue & Customs v Larkstar Data Ltd

The General Commissioners misdirected themselves in law regarding the tests for control and mutuality of obligation, and made a finding of fact not supported by the evidence. Their decision cannot stand and must be set aside. The matter is remitted for rehearing by a differently constituted panel.

Parties
Applicant/claimant: Her Majesty’s Revenue & Customs; Respondent/defendant: Larkstar Data Ltd
Jurisdiction
England and Wales
Judgment Date
24 November 2008
Procedural Posture
Appeal / Judgment on Appeal From General Commissioners
Outcome
appeal allowed; decision of General Commissioners set aside; matter remitted for rehearing
Legal Topics
IR35 Legislation, Employment Status, Income Tax Under PAYE, Social Security Contributions, Mutuality of Obligation, Control in Employment Relationships
Tax Law Employment Law IR35 Legislation Employment Status Income Tax Under PAYE Social Security Contributions Mutuality of Obligation Control in Employment Relationships

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 9 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Her Majesty’s Revenue & Customs

Applicant/claimant

Larkstar Data Ltd

Respondent/defendant

Procedural Posture

Appeal / Judgment on Appeal From General Commissioners

Legal Issues

  1. 1 Whether the IR35 legislation applies to the arrangements between Larkstar Data Ltd and MBDA via TPS for the provision of Mr Brill's services
  2. 2 Whether, under a hypothetical direct contract, Mr Brill would be an employee or independent contractor of MBDA

Ratio Decidendi

The General Commissioners misdirected themselves in law regarding the tests for control and mutuality of obligation, and made a finding of fact not supported by the evidence. Their decision cannot stand and must be set aside. The matter is remitted for rehearing by a differently constituted panel.

Court Disposition

appeal allowed; decision of General Commissioners set aside; matter remitted for rehearing

Orders

  • Appeal allowed with costs to the applicant, subject to detailed assessment in absence of agreement.
  • Subject matter remitted to the General Commissioners for rehearing by a different panel.