In only the second case before them on the issue, the Special Commissioners of the Inland Revenue have ruled that IR35 did not apply to the arrangements between a freelancerís company, Tilbury Consulting Ltd and its client, Ford.
Roger Tilbury, a director of Tilbury Consulting Ltd, was supported by the PCG in the action which extended over two years, demonstrating the important role that the PCG plays in supporting its members.
Adrian Marlowe, Managing Director of specialist adviser Lawspeed, commented, ëIn reaching their decision, the Special Commissioner found that IR35 did not apply because of the lack of control exercised by Ford over Mr Tilburyís work and because Mr Tilbury was not personally required to perform the work. It is also notable that Tilbury Consulting was in turn contracted to work for a company called Compuware which provided facilities management for Ford and wholly controlled the project for Ford. The proposal that Compuware was the client for IR35 purposes was not formally presented by the Inland Revenue and could be regarded potentially as a significant error in its approach.í
Adrian Marlowe continued, ìThere is no doubt that this result is excellent news for the freelancer concerned and underlines the principle that freelancers may operate outside IR35. However, the fact that the Revenue appears to have made a significant error still leaves questions open ñ had Compuware been regarded as the client would the result have been different? Nevertheless, the case establishes clear pointers for freelancers and their advisers to consider and implement for the future, and highlights the value for freelancers of investing in PCG membership and in advice from an IR35 specialist at the outset. Lawspeed, which works in collaboration with the PCG, offers a range of services, including contracts and support for agency clients and advice and representation to the Inland Revenue for its freelancer clients. All services are designed to relieve agencies and freelancers of the worries and uncertainties connected with IR35 and lessen the risk of the Inland Revenue mounting a challenge on the IR35 rules. This type of case certainly highlights the value of those services, given the stress on Mr Tilbury over a period of more than two years.í
Second IR35 victory for PCG
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