PD & MJ Limited v The Commissioners for HMRC

PD & MJ Limited v The Commissioners for HMRC

The Upper Tribunal found no material error of law in the FTT’s interpretation of the actual and hypothetical contracts, its assessment of control, and its multifactorial evaluation of employment status. The FTT was entitled to conclude that under the hypothetical contracts Mr Thompson would be regarded as an employee of Sky UK Limited for income tax and national insurance purposes under IR35.

Parties
Appellant: PD & MJ LIMITED; Respondents: THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS
Jurisdiction
England and Wales
Judgment Date
17 March 2025
Procedural Posture
Tax Appeal / Upper Tribunal Appeal From First Tier Tribunal
Outcome
Appeal dismissed
Legal Topics
IR35 Intermediaries Legislation, Income Tax, National Insurance Contributions, Employment Status, Personal Service Companies
Tax Law Employment Law IR35 Intermediaries Legislation Income Tax National Insurance Contributions Employment Status Personal Service Companies

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Parties

PD & MJ LIMITED

Appellant

THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS

Respondents

Procedural Posture

Tax Appeal / Upper Tribunal Appeal From First Tier Tribunal

Legal Issues

  1. 1 Whether the First-tier Tribunal erred in law in concluding that under hypothetical contracts Mr Thompson would be regarded as an employee of Sky UK Limited for income tax and national insurance purposes
  2. 2 Correct interpretation of 'ad hoc as and when required' contractual terms
  3. 3 Proper construction of hypothetical contracts under IR35

Ratio Decidendi

The Upper Tribunal found no material error of law in the FTT’s interpretation of the actual and hypothetical contracts, its assessment of control, and its multifactorial evaluation of employment status. The FTT was entitled to conclude that under the hypothetical contracts Mr Thompson would be regarded as an employee of Sky UK Limited for income tax and national insurance purposes under IR35.

Court Disposition

Appeal dismissed

Orders

  • No material error of law found in FTT decision
  • Intermediaries Legislation applies to Sky’s engagement of Mr Thompson through the Appellant