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In Little Piece of Paradise Limited v HMRC [2021] TC08300, the First Tier Tribunal (FTT) found that Sky Sports presenter Dave Clark was a deemed employee for the purposes of IR35 and his SKY TV contract with a subsequent PAYE and Class 1 NICs liability of over £280,000.

As required by the legislation, the FTT constructed the terms of a hypothetical contract between Mr Clark and Sky TV that would have been in place in the absence of his intermediary company. It concluded that the following terms were a question of fact and gathered from a mix of the existing contract and the parties' own conduct:

Using the hypothetical contract, the FTT applied the test set out in Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance [1968] 2 QB 497 to check Employment status.

The FTT concluded that the contract was for one of service and so caught by the IR35 legislation. The appeal was dismissed.

Useful guides on this topic

IR35: Off-Payroll Working
What is IR35? How does it work? How is the deemed payment calculated? What expenses are deductible?

Employment status & detailed checklist
Why is it important to check my employment status? What tests should I use? What is the recent case law?

Employment Status: mutuality of obligation
What is mutuality of obligation? Why is mutuality of obligation not considered by HMRC's Check Employment Status for Tax tool?

IR35: Kay Adams v Lorraine Kelly v Christa Ackroyd v Eamonn Holmes
What was the difference between the facts and circumstances of the recent IR35 decisions on radio and TV hosts, Kay Adams, Lorraine Kelly, Christa Ackroyd and Eamonn Holmes?

External link

Little Piece of Paradise Limited v HMRC [2021] TC08300


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