UK Court Sides With HMRC In Appeal Over Contractor Taxes

UK judges found a lower court erred in finding an IT consultant hired as a contractor isn’t subject to paying income tax and national insurance contributions like an employee.

Upper Tribunal Tax and Chancery Chamber Justice Jonathan Richards and Judge Ashley Greenbank ruled Monday that a First-tier Tribunal decision over a dispute between His Majesty’s Revenue and Customs and RALC Consulting Ltd. included errors of law.

“We are satisfied that the errors of law are material, and we should therefore set aside the decision,” Richards and Greenbank said.

RALC is the personal service company of IT consultant Richard Alcock. ...