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IR35

Freelancer wins long battle over IR35

Freelancer wins long battle over IR35

Mark Fitzpatrick (taxpayer) and sole owner of MBF Design Services Ltd was cleared by a tax tribunal of charges brought by HMRC under the IR35 legislation, which claimed that he was using his Limited Company to avoid tax when working as a contractor to Airbus. The IR35 challenge brought by HMRC appears to have lost of several counts but most clearly on a lack of “mutuality of obligation” (“MOO”). It seems that if contractors arrange their affairs correctly and the arrangement terms reflect the reality of the situation then IR35 will not apply.

 

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