Haulier status

The taxpayer Mr B was a haulage contractor. He bought a lorry from S.

Mr B had driven the lorry when it belonged to S and it was agreed he would continue to do so now it was owned by the taxpayer.

The issue arose as to whether or not Mr B was employed by the taxpayer. HMRC ruled he was and assessed the taxpayer to tax and National Insurance in respect of his earnings.

The taxpayer appealed.

The First-tier Tribunal found that although the taxpayer was obliged to pay Mr B there was no obligation for him to provide work for Mr B. Thus there was no mutuality of obligation and no contract of employment existed between the taxpayer and Mr B.

Furthermore the decision as to how many loads...