Not self employed

In 1988 an agency company DPP agreed to supply the AA with temporary staff. During 2000 to 2003 the taxpayer consultancy company Dragonfly provided the services of its sole director B to the AA. These services were arranged via DPP which was unconnected to Dragonfly or B.

HMRC said that B was an employee of the AA and was liable to pay National Insurance. The taxpayer company appealed to the Special Commissioner who concluded from the evidence that B was effectively an employee of the AA and dismissed the appeal.

The High Court found the Special Commissioner's decision was correct. A contract of service existed when:

• the servant agreed that in consideration of a wage or other remuneration he would provide his own work and skill in the performance of some service for his master;
• the servant agreed...