HMRC contractor scores IR35 payout after yet another taxman blunder

www.theregister.co.uk | 9/24/2018 | Staff
Click For Photo: https://regmedia.co.uk/2017/07/05/surprised_man_computer_photo_via_shutterstock.jpg

A self-employed contractor has scooped thousands of pounds from HM Revenue and Customs after the tax body used its controversial CEST online tool to wrongly determine her tax status.

Susan Winchester, a marketing and business development consultant, dragged HMRC, Kinect Recruitment Ltd and three others to the Central London Employment Tribunal over £4,200 of unpaid holiday pay.

Firm - SJW - Marketing - Solutions - Ltd

Her firm, SJW Marketing Solutions Ltd, had been contracted by HMRC. Officials ran the Check Employment Status for Tax (CEST) tool to determine Winchester's status and the tool decided that IR35 applied. Having done that, the taxman then forced her onto an agency's payroll, a decision that could not be challenged.

"I just couldn't understand why somebody could make some arbitrary decision about my tax and employment status on a brief, over-simplified questionnaire that I had no input in and seemingly no right to challenge," said Winchester.

Case - System - Winchester - Agency - Worker

When she took her case to the legal system, Winchester said that because she had effectively become an agency worker thanks to HMRC's decision, she was therefore entitled to holiday pay and to the same holiday entitlement as actual employees of the tax collection agency.

Had HMRC's minions been reading The Register, they may have...
(Excerpt) Read more at: www.theregister.co.uk
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