Presence of mutuality of obligation

Red White and Green Ltd was the personal service company of Eamonn Holmes (EH). He has been a presenter on ITV’s Good Morning from 2006. He was engaged through Red White and Green Ltd under four contacts between it and ITV.

HMRC raised determinations under IR35 for 2011-12 to 2014-15 on the basis that under a hypothetical contact between EH and ITV he would have been an employee.

The taxpayer appealed.

The First-tier Tribunal considered the nature of the assumed contract between ITV and EH had there been a direct contract between them. After a lengthy examination of the case law the tribunal found that the assumed contract would be identical to that entered into between RWG and ITV. Further there was enough mutuality and control to ‘place the assumed contract between ITV and EH in the employment field’.

Under the agreement EH had...