Former footballer and TV pundit Phil Thompson is the latest media personality to face IR35 challenges against HMRC and has consequently lost his appeal.
From 2013, Phil Thompson provided services through his limited company, PJ & MD Ltd, and HMRC believed him to have been working under a contract of employment, rather than self-employed.
As a result, he will need to pay £294,306.68 in tax and National Insurance contributions (NICs) covering contracts held between 2013/14 and 2017/18.
This latest high-profile case has once again highlighted the complexities and confusion over the IR35 legislation.
Back in April 2023, the Association of Professional Staffing Companies (APSCo) spoke out, reiterating its calls for changes to Off Payroll rules as a result of the IR35 cases involving Eamonn Holmes and Gary Linekar.
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At the time, Tania Bowers, Global Public Policy Director at APSCo – a member of the HMRC Intermediaries and Employment Forum – said, “APSCo has long been vocal over the reforms that are needed to ensure Off Payroll legislation doesn’t unfairly penalise both recruitment firms and highly skilled contractors.
“We continue to work closely with HMRC on changes to the rules including potential solutions to the double taxation that is inherent in the current rules.
“In its current form, Off Payroll legislates that HMRC can collect tax from the worker via corporation and personal taxes, and then recover full PAYE and NICs from the fee payer in the event of a reclassification. This is leading to recruiters and clients being unfairly taxed.
“We believe wider reforms are needed and will continue to work closely with HMRC to guide any future developments on behalf of the staffing sector.”
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