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Workers are employees

18 January 2011
Issue: 4288 / Categories: Tax cases , Income Tax
Red Apple Cleaning Management Ltd (TC860)

The appellant operated a cleaning management company providing commercial services. Cleaners had to pay a service bond for the contracts and the appellant took a percentage of the fees. The firm treated the cleaners as self-employed but HMRC claimed they were employees.

The company appealed.

The First-tier Tribunal looked first at mutuality of obligation referring to various cases including Dragonfly Consulting (SpC 655). The tribunal noted that the pay records gave ‘the strong impression of employment’ because the same workers were taken on weekly to clean for regular customers and paid a set amount for the work.

With regard to control it was clear from the evidence that the workers had virtually no control over their jobs; the company told them when and where to carry out their work. In addition the firm regularly checked the...

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