In I Mitchell v HMRC (TC01041 – 11 April) a cardiac surgeon (M) arranged for another surgeon (B) to assist him during operations.
HMRC issued a ruling that B was an employee of M and that M was required to account for Class 1 NICs (and deduct income tax under PAYE).
The First-tier Tribunal allowed M’s appeal holding that B was not an employee and was working under a contract for services rather than a contract of service.
Why it matters: The First-tier reaffirmed the long-established distinction between a contract for services and a contract of services and held that the senior surgeon was not required to treat his colleague as an employee.
