PD & MJ Limited v The Commissioners for HMRC
Decision date: 11 December 2023
Neutral citation: [2024] UKFTT 38 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This case concerned whether IR35 applied to services provided by Mr Phil Thompson through his company PD & MJ Ltd to Sky UK as a Soccer Saturday pundit. The Tribunal construed the contractual terms (including Sky's "first call", control over timing/location, editorial rights and exclusivity restrictions) and held the hypothetical direct contract would have been a contract of employment. As a result the IR35 rules applied and the appellant's appeal against HMRC's PAYE and NICs assessments for 2013/14–2017/18 was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where a services agreement grants the client a contractual "first call", express rights to require performance "as and when required", control over when and where services are performed, editorial control and restrictions on the worker providing similar services elsewhere, the hypothetical direct contract may properly be treated as one of employment for IR35 purposes; an express right to require performance "as and when required" is construed as a right to demand performance, subject to an implied term of reasonableness.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted that informal practical arrangements (such as a gentlemanly accommodation of non-attendance) do not automatically negate clear contractual rights unless there is evidence the parties varied the contract; and that features like freedom over content/opinion, limited time commitment, reputational risk or payment by block fee can be neutral or outweighed by strong contractual control and exclusivity when assessing employment status.