Red Apple Cleaning Management Ltd v Commissioners for Her Majesty's Revenue and Customs

Decision date: 30 November 2010

Neutral citation: [2010] UKFTT 618 (TC)

Overall AI summary confidence: high

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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 concerns whether cleaners supplied to clients by Red Apple Cleaning Management Ltd were employees or self‑employed. The Tribunal, proceeding in the company's absence, found on the evidence of witness testimony, pay records and company practices that the cleaners were engaged under contracts of service and dismissed the company's appeal, upholding HMRC's PAYE/Regulation 80 determinations for 2003/04–2008/09. The Tribunal held there was mutuality of obligation, significant company control, lack of genuine substitution and absence of financial risk for the workers. The company failed to discharge the onus of proof and was informed of its right to seek permission to appeal.

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: medium

Where unchallenged evidence shows regular engagement by a worker, remuneration set by the engager, direction as to when and where to work, absence of financial risk, and lack of genuine substitution, those factors support a finding that the worker is under a contract of service rather than genuinely self‑employed.

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 a written document or a contractual label describing workers as "self‑employed" will not prevail if witnesses deny signing or receiving it and the factual matrix points to employment; and that the Tribunal may properly proceed in the interests of justice where a party elects to be absent from the hearing.

Warning

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