In MDCM v HMRC [2018] UKFTT 147 (19 March 2018) the FTT found that Mr Daniels an employee of MDCM was not to be treated as an employee of the ultimate contracting company under the intermediaries legislation (IR35).
Mr Daniels and his wife are the directors and employees of MDCM. MDCM provides construction management services to construction companies. When a construction company needs workers with Mr Daniels’ expertise it contacts an independent introductory company for example STL; the introductory company in turn contacts Mr Daniels. If Mr Daniels accepts the instruction MDCM and STL enter into a contract in standard form; and STL enters into a separate contract with the construction company at a slightly higher day rate.
HMRC argued that Mr Daniels personally performed services for STL under a contract via an intermediary MDCM; and that if these services were provided...
