Brian Turnbull v Commissioners for Her Majesty's Revenue and Customs
Decision date: 10 June 2011
Neutral citation: [2011] UKFTT 388 (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
HMRC treated Mr Gurdeep Singh Bhangal as an employee of Mr Brian Turnbull for tax/NIC purposes; Turnbull appealed. The Tribunal preferred Turnbull's evidence, found there was no mutuality of obligation and that any control over Bhangal was exercised by Hanson (a third party) rather than by Turnbull, and concluded Bhangal was not Turnbull's employee, allowing the 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
The Tribunal held that mutuality of obligation is an essential requirement for a contract of employment and its absence points against employment; further, the lack of direct control by the putative employer (when control is exercised by a third party) is material to the employment status inquiry.
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 suggested that a person may be in business on his own account even if supplying only personal services without providing equipment or bearing prospective profit risk, and recommended that tribunals assess status by building a factual "picture" from accumulated detail rather than applying a rigid checklist.