Interim managers urged to understand Dragonfly IR35 judgement

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Interim managers urged to understand Dragonfly IR35 judgement

Posted Sep 15, 2008

Although the current economic climate may bring extra work opportunities, professional interim managers have been urged by their representative body to look into the details of the recent Dragonfly IR35 judgement.

The Institute of Interim Management (IIM) has advised its members to pay attention to the potential implications of the outcome of the High Court Case against Dragonfly Consulting Ltd.

As reported earlier this month on Contract Eye, the case brought into close review the key aspects of many of the arguments hitherto used successfully to fend off suggestions by HMRC that a contractor is self-employed rather than an employee of his/her client.

The IIM has advised: "There is clearly much to digest as a result of this case, and any professional interim managers concerned that their contractual arrangements may be on the borderline in relation to IR35 should take urgent professional advice. The goalposts have been redefined more favourably for HMRC, and it is to be expected that they will take full advantage of this."

IIM Chairman, Tom Brass, also commented on the general economic conditions in the UK:

"UK plc is feeling the pain and inevitably is moving to a period where even the strongest companies will need to change to survive, the weaker ones will need the attentions of the turnaround specialists, and the weakest will probably go to the wall. Change of this nature brings opportunities for the Interim - in many respects interim management is counter-cyclical, picking up the pieces on the way down, and providing resources as growth returns. However as newly-redundant employees come onto the jobs market, the number of available 'Interims' will increase, with consequences for both daily rates and quality of service. Members should make the professional accreditation of their Institute count!"

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