Combative agent no match for statutory legislation

Qualified professional advisers are a good thing because they know exactly what to do when a client’s tax position turns sour. Well, that’s the theory. Recent cases heard by the first tier tribunal (FTT) suggest that this may not always be the case.

The case of Cranham Sports LLP (TC08794) is one such.

Sporting chance

The limited liability partnership (LLP) was established in 2009 and acted as an intermediary, supplying the services of Barry Cowan as a tennis commentator to Sky UK Ltd. 

HMRC – after seeking information from Sky – took the view that “the arrangements between [the LLP] and Sky are such that had they take (sic) the form of a contract between Mr Cowan and Sky, Mr Cowan would be regarded as employed by Sky such that additional income tax and class 1 national insurance contributions are due.” 

Determinations (regulation 80, Pay as You Earn Regulations) and notices (section 8, Social Security and Contributions (Transfer of Functions) Act 1999) to collect this tax and national insurance contributions (NIC) were issued to the LLP for the years 2014/15 to 2018/19.