13 June 2008

Martin Hesketh, managing director of Brookson, responds to the latest IR35 hearing at the High Court.

The Dragonfly Consultancy case, which was heard last week, highlights the importance of constant vigilance when it comes to compliance generally and employment status compliance in particular.

Despite the huge legislative shifts the contracting industry has experienced in recent times, the IR35 legislation remains key for self employed contractors in determining employment status and, with this in mind, we would urge all contractors to ensure they have obtained robust and documented professional advice for each of their assignments.

It is all too easy for busy contractors to see this area as extra hassle and “take the risk” on their employment status. And yet demonstrating self employed status is the key to enabling those contractors who want to run their own business to genuinely safeguard all of the benefits that this way of working can bring. These types of Special Commissioners’ decisions illustrate the dangers that exist (and the potential costs involved) and re-inforce the benefits of obtaining professional and specialized advice about employment status so contractors can be confident of their position.

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