An IT Contractor, who was found to be liable for £27,000 in IR35 taxes, could have avoided such a fate if he had sought "sound business advice and professional support", according to the Professional Contractors Group.

The statement follows on the MKM Computing Ltd case which was heard by the Special Commissioners, as reported by Contractor UK last week.

Following MKM Computing Ltd's loss at the IR35 appeal, Kate Cottrell, a former inspector for HMRC, told Contractor UK:

"This case once again highlights the need to review contracts and working arrangements."

"From the clauses quoted in the judgment the lower contract in this case would fail the IR35 tests and the working arrangements appear to support the same conclusion."

The PCG is a source of expert and practical advice for contractors and freelancers and was originally set up to help its members cope with the implications of IR35 and other tax legislation affecting them.