Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Intention when determining employment status

12 December 2018 / Alexander Wilson
Issue: 4676 / Categories: Comment & Analysis

On the border


  • A hypothetical contract can only be determined by establishing what the parties would have agreed.
  • The approach of the tribunals is mixed but the main theme seems to be that the parties’ intentions are of little importance.
  • IR35 requires an artificial exercise by the tribunal to determine the hypothetical contract between the worker and the client.
  • The Ready Mixed Concrete case explains that the rights and duties of the parties and their intentions are relevant.
  • The Supreme Court in Pimlico Plumbers confirmed that the overarching intention of the parties is material when determining employment status.
  • If an arrangement is genuine a business should be able to choose between taking on employees or outsourcing.

On a true reading of ITEPA 2003 ch 8...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon