IR35 Developments: Dragonfly Consulting Limited
An IT contractor, who is facing a tax bill of £99,000, has appealed to the special commissioners about the decision by HMRC that he was operating within IR35.
The case and its outcome will be closely monitored as a defeat for Dragonfly Ltd at this stage could be very important and have a significant impact on existing defences against IR35.
One of the key areas of the case is around the Right of Substitution and whether this was possible for a one man band operation to exercise a right of substitution (and therefore not be an employee). Or whether this contract clause was merely 'window dressing'.
We will provide updates on this case as it develops.