Turnbull v Revenue & Customs [2011] UKFTT 388 (TC) (10 June 2011)

Turnbull v Revenue & Customs [2011] UKFTT 388 (TC) (10 June 2011)

There was no mutuality of obligation between Mr Turnbull and Mr Bhangal, as Mr Turnbull was not obliged to provide work and Mr Bhangal was not obliged to accept work. Control over the work was exercised by Hanson, not Mr Turnbull. Therefore, the relationship was not one of employment but of self-employment.

Citation
[2011] UKFTT 388
Parties
Appellant: Brian Turnbull; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
10 June 2011
Procedural Posture
Income Tax/corporation Tax Appeal / First Tier Tribunal (tax), Substantive Decision
Outcome
Appeal allowed
Legal Topics
Employment Status, PAYE Regulations, National Insurance Contributions, Contract for Services Vs Contract of Service
Tax Law Employment Law Employment Status PAYE Regulations National Insurance Contributions Contract for Services Vs Contract of Service

Case Brief

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Parties

Brian Turnbull

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Appeal / First Tier Tribunal (tax), Substantive Decision

Legal Issues

  1. 1 Whether Mr Bhangal was an employee of Mr Turnbull or a self-employed contractor for tax and NIC purposes

Ratio Decidendi

There was no mutuality of obligation between Mr Turnbull and Mr Bhangal, as Mr Turnbull was not obliged to provide work and Mr Bhangal was not obliged to accept work. Control over the work was exercised by Hanson, not Mr Turnbull. Therefore, the relationship was not one of employment but of self-employment.

Court Disposition

Appeal allowed

Orders

  • The determinations and decisions of HMRC under Regulation 80 of the Income Tax (PAYE) Regulations and s 8 Social Security (Transfer of Functions, etc.) Act 1999 are set aside.