HMRC have won a number of highly publicised tribunal rulings this year, including those related to Christa Ackroyd and three BBC freelance presenters but there have also been losses, including Lorraine Kelly and most recently an IT contractor working for the Department of Work & Pensions.
IT contractor, Richard Alcock, had a personal service company called RALC Consulting Ltd. From 2010 to 2015, RALC contracted with Accenture and the Department for Work and Pensions (DWP) for work on a specific project. HMRC determined the role was one of employment and the IR35 charge was due.
The First Tier Tribunal found in Alcock’s favour on the basis that:
- there was no explicit obligation in the contract between the parties for Accenture to provide Alcock with a minimum amount of work, nor did it specify the number of hours or days in total. The FTT noted that ‘the lack of contractual right or any express guarantee of any hours or days of work and that he was to complete a specific project is significant
- there was no commitment to offer a renewal of the contract
- whilst the DWP provided the laptop on which Alcock worked, this was not a critical determinant in his employment status as it was a requirement due to security protocols
- while Alcock was required to hit certain milestones in the project work and achieve specific outcomes, he could decide when he worked, as evidenced by the fact he had worked for other clients during the period
- whilst the Accenture contract restricted Alcock’s ability to provide a substitute, this was not a crucial factor
- Alcock did not have a notice period and, in fact, one contract was cut short as the project was cancelled
HMRC intends to appeal.
07 November 2019 
Julia Ascott, Employment Taxes Specialist
