George Mantides Ltd v Revenue & Customs (INCOME TAX/CORPORATION TAX : Personal service companies (IR 35)) [2019] UKFTT 387 (TC) (13 June 2019)

George Mantides Ltd v Revenue & Customs (INCOME TAX/CORPORATION TAX : Personal service companies (IR 35)) [2019] UKFTT 387 (TC) (13 June 2019)

The Tribunal held that, considering all the circumstances, the hypothetical contracts between Mr Mantides and the hospitals would not have been contracts of employment. While there was personal service and some control, the right of substitution (particularly at MMH), lack of employment benefits, payment by the hour, ability to refuse sessions, and the overall nature of the engagements pointed against employment. Therefore, IR35 did not apply and GML was not liable for PAYE and NIC on the sums received.

Citation
[2019] UKFTT 387
Parties
Appellant: George Mantides Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
13 June 2019
Procedural Posture
Income Tax/corporation Tax Appeal (ir35) / First Tier Tribunal (tax) Substantive Decision
Outcome
Appeal allowed
Legal Topics
IR35, Personal Service Companies, Employment Status, PAYE, National Insurance Contributions
Tax Law Employment Law Social Security Law IR35 Personal Service Companies Employment Status PAYE National Insurance Contributions

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 4 Authorities cited 22 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

George Mantides Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Appeal (ir35) / First Tier Tribunal (tax) Substantive Decision

Legal Issues

  1. 1 Whether the circumstances of the Appellant's engagements were such that, had the services been provided under a contract directly with the worker, the worker would have been an employee for tax and NIC purposes under IR35.

Ratio Decidendi

The Tribunal held that, considering all the circumstances, the hypothetical contracts between Mr Mantides and the hospitals would not have been contracts of employment. While there was personal service and some control, the right of substitution (particularly at MMH), lack of employment benefits, payment by the hour, ability to refuse sessions, and the overall nature of the engagements pointed against employment. Therefore, IR35 did not apply and GML was not liable for PAYE and NIC on the sums received.

Court Disposition

Appeal allowed

Orders

  • The determinations and decisions under appeal are set aside.