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HMRC to get pennies after ceasing IR35 action against contractor company
Posted Apr 21, 2010
HMRC has finally agreed to end its IR35 court case action against Larkstar Data, yielding the tax authorities just pennies for their trouble.
Alan Brill, a director of Larkstar Data Ltd, has been fighting the authorities over his IR35 status since 2003.
Over the past seven years, Brill has had to undergo a Tribunal and a High Court Hearing, alongside other procedures.
Famously, the High Court referred the case back to the General Commissioners early in 2009. Only at the subsequent 're-appeal of the appeal' was the clase finally closed.
In a result which shows how ridiculous the IR35 regime has become, the PCG says that HMRC will be entitled to a mere £129.79 from the Larkstar bank account, after Mr Brill has settled final bills before opting to retire as a contractor.
In return for this small sum, the tax authorities have agreed not to pursue Mr Brill for any PAYE of NICs they feel may be owed as a result of the now-closed investigation.
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