It has also been revealed that this UTT, which focused on two contracts, has delayed making a decision on the second contract, until another tax case (PGMOL v HMRC) has its result published.
The two contracts involve locum doctor, George Mantides. At a First Tier Tribunal in 2019 it was decided that one contract he held with Royal Berkshire Hospital (RBH) belonged inside IR35. The other, which was held with Medway Maritime Hospital (MMH), was considered to be outside IR35.
HMRC was due to appeal the MMH verdict, while Mr Mantides appealed the RBH decision at the UTT.
IR35 specialists, Qdos, described HMRC as 'shambolic' and saw this as another example of the questionable efficiency of the Department.
Seb Maley from Qdos said: "That HMRC missed the deadline to appeal the contract Mr Mantides held with Medway Maritime Hospital tells you everything you need to know about the efficiency of the tax office. Not only does HMRC regularly struggle to identify if a contract belongs inside or outside IR35, but they aren’t organised enough to lodge an application to appeal despite it being something as significant as an Upper Tier Tribunal. It’s shambolic.
“With regards to the second contract, held with Royal Berkshire Hospital, it shows how important the upcoming PGMOL verdict may prove to be. This decision is imminent, could impact the outcome of several cases and prove that HMRC’s view of one crucial aspect of IR35 case law doesn’t stack up.
“Like Mr Mantides’ contract, the PGMOL case, involving professional football referees, hinges on whether the individuals in question were mutually obliged to work for their client, in the way that employees are.
"If it’s found that Mutuality of Obligation doesn’t exist, then HMRC’s IR35 tool, CEST, is fundamentally flawed and hundreds of thousands of IR35 decisions it has made will be questioned.”
Further IR35 information
For more information about all aspects of IR35, including the controversial IR35 reforms see Shout99's News on IR35 section.
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
Susie Hughes © Shout99 2021