My workload for the foreseeable future stems from the tax legislation known as ‘IR35’ or ‘Off-payroll working.’ People call me ‘Mr IR35.’ I anticipate being busy helping firms with compliance checks for the next decade.
If you could make one change to a tax law or practice, what would it be)?
As founder of the UK Taxpayer Fairness campaign (taxpayerfairness.org), I’m championing the introduction of a Taxpayer Bill of Rights, supported by a Taxpayers Rights Code, backed up by a powerful independent Taxpayer Advocate Service to ensure independent oversight and accountability of the administration of the tax system. The US Congress successfully enacted laws in 1998 imposing procedural fairness rules on their Inland Revenue Service, providing a template for the UK. It would lead to fairer treatment of taxpayers, help to curb any abuses of power, leading to better legislation and a reduction in tax tribunals.
What do you know now that you wish you’d known at the start of your career?
Before moving into tax, my first career in the late 1990s was leading teams of developers to build online banks and due diligence systems for law firms. I’d been programming computers since I was 10, so I was ready to go. My only regret is not taking a more prudent approach to investments earlier in my career.
Are there any new rules that are causing a particular problem in practice?
Labour’s new Employment Bill is a worry because it could inadvertently cause harm to the self-employed by making it far more challenging for firms and individuals to engage on an arms’ length self-employed basis. Vulnerable workers should be protected and get rights, but what about the rights of people who want to be their own boss without interference from the state? If Labour want growth, they need to fire up the flexible workforce and not inadvertently undermine it.
The future of work is self-employment, primarily driven by AI. Labour’s prehistoric approach is divorced from the reality of how traditional labour models will be shredded – facilitating a direct threat to the Treasury. Unless Labour understands that the accelerating pace of AI and their archaic approach of swimming against the tide will massively undermine the tax system, the UK will be left behind. We should be leading.
Has a recent tax case caught your eye?
The decision of the Supreme Court in Professional Game Match Officials Ltd [2024] UKSC 29 is likely to be highly impactful for both taxpayers and HMRC. The case ratified the principles from the Court of Appeal decision in Atholl House Productions Ltd [2022] EWCA Civ 501. Further, it clarified some principles for correctly determining employment tax status.
Whilst the decision has been remitted to the First-tier Tribunal, the combination of Atholl and PGMOL means that three of HMRC’s longstanding policy positions on status law were wrong. In Atholl, contrary to HMRC’s policy position, we learnt that the control test was not binary, and its extent was a relevant factor. Secondly, we learnt that personal service and control don’t result in a default finding of employment and that the wider factual matrix must be considered. Thirdly, contrary to HMRC’s submission that mutuality meant payment for work done, the Supreme Court said the nature of the obligations should be considered as part of the overall evaluation.
Any realistic hopes for the Budget?
The only hope is that it is boring. We need stability and certainty.
You might not know this about me but...
I have an insatiable appetite to read, learn and attack problems from first principles. At age 52, I’m studying for my third degree, a Masters in Law.
My workload for the foreseeable future stems from the tax legislation known as ‘IR35’ or ‘Off-payroll working.’ People call me ‘Mr IR35.’ I anticipate being busy helping firms with compliance checks for the next decade.
If you could make one change to a tax law or practice, what would it be)?
As founder of the UK Taxpayer Fairness campaign (taxpayerfairness.org), I’m championing the introduction of a Taxpayer Bill of Rights, supported by a Taxpayers Rights Code, backed up by a powerful independent Taxpayer Advocate Service to ensure independent oversight and accountability of the administration of the tax system. The US Congress successfully enacted laws in 1998 imposing procedural fairness rules on their Inland Revenue Service, providing a template for the UK. It would lead to fairer treatment of taxpayers, help to curb any abuses of power, leading to better legislation and a reduction in tax tribunals.
What do you know now that you wish you’d known at the start of your career?
Before moving into tax, my first career in the late 1990s was leading teams of developers to build online banks and due diligence systems for law firms. I’d been programming computers since I was 10, so I was ready to go. My only regret is not taking a more prudent approach to investments earlier in my career.
Are there any new rules that are causing a particular problem in practice?
Labour’s new Employment Bill is a worry because it could inadvertently cause harm to the self-employed by making it far more challenging for firms and individuals to engage on an arms’ length self-employed basis. Vulnerable workers should be protected and get rights, but what about the rights of people who want to be their own boss without interference from the state? If Labour want growth, they need to fire up the flexible workforce and not inadvertently undermine it.
The future of work is self-employment, primarily driven by AI. Labour’s prehistoric approach is divorced from the reality of how traditional labour models will be shredded – facilitating a direct threat to the Treasury. Unless Labour understands that the accelerating pace of AI and their archaic approach of swimming against the tide will massively undermine the tax system, the UK will be left behind. We should be leading.
Has a recent tax case caught your eye?
The decision of the Supreme Court in Professional Game Match Officials Ltd [2024] UKSC 29 is likely to be highly impactful for both taxpayers and HMRC. The case ratified the principles from the Court of Appeal decision in Atholl House Productions Ltd [2022] EWCA Civ 501. Further, it clarified some principles for correctly determining employment tax status.
Whilst the decision has been remitted to the First-tier Tribunal, the combination of Atholl and PGMOL means that three of HMRC’s longstanding policy positions on status law were wrong. In Atholl, contrary to HMRC’s policy position, we learnt that the control test was not binary, and its extent was a relevant factor. Secondly, we learnt that personal service and control don’t result in a default finding of employment and that the wider factual matrix must be considered. Thirdly, contrary to HMRC’s submission that mutuality meant payment for work done, the Supreme Court said the nature of the obligations should be considered as part of the overall evaluation.
Any realistic hopes for the Budget?
The only hope is that it is boring. We need stability and certainty.
You might not know this about me but...
I have an insatiable appetite to read, learn and attack problems from first principles. At age 52, I’m studying for my third degree, a Masters in Law.
