The Long Wait: A Tax Mishap Revisited
Five years after the British tax authority HMRC knocked on the door again, the tribunal decided to revisit an IR35 case that dates back to the early 2010s. The back‑to‑back tax bill? A whopping £243,324 (and that’s before interest or penalties even come into play).
The Original Deal (2010‑2015)
- Richard Alcock was working for Accenture and the Department for Work and Pensions through his own limited company, RALC Consulting Ltd.
- He argued he was not inside IR35 because he ran his own business, there was no Mutuality of Obligation (MoO), and the clients didn’t dictate how he worked.
- The First Tier Tribunal sided with Alcock, meaning the tax liability was set aside.
HMRC’s Flip‑Flop
But like a plot twist in a drama series, HMRC didn’t just sit back. They backed up the decision, claiming that the Tribunal had missed the “real” way services were delivered – not the contract words.
Why It’s a Mess
IR35 is a maze. The law tries to separate contracting from employment, but every case is a near‑mystery. The judges found that, even on the last day of the hearing, they were still puzzled by the fine print.
Now The Circle Repeats
Fast forward to December 2023, when the Upper Tier Tribunal instructed a rehearing. The kicker? RALC Consulting Ltd has long been out of business, yet Richard is still expected to go through the courtroom drama again.
What the Experts Say
Qdos CEO Seb Maley has dubbed it “unfair.” He argued:
- “Five years after winning, and almost a decade after the work was done, this contractor is stuck sawing in through legal hoops again.”
- “Contractors bearing the cost of these corporate gymnastics is a familiar story.”
- “With over £200,000 looming, it’s a nightmare just to keep your head above water.”
Takeaway: The “IR35 and You” Checklist
Don’t let the law catch you off‑guard. Keep these points in mind:
- Check whether you truly have Mutuality of Obligation with your clients.
- If you’re feeding into the “business on your own account” field, be ready to prove it.
- Hold onto all contract details—terms can be slippery.
- And never underestimate how long tax battles can drag on.
In short, if your gig feels more like a solo gig than an employer‑employee setup, better keep your paperwork tight and your mental energy thicker. Because, folks, let’s face it: the law prefers a good story, and it won’t let you jump the line—no matter how many years have passed.
